Jimmy's Painting Jimmy's Painting is an owner-operator run sole proprietorship that operates in Galloway, BC, Jimmy Davis started the company in several years ago. The business originally did primarily household painting services. Jimmy discovered there was a shortage of DIY paint supplies in town and expanded to small retail shop carrying paint and paint supplies. Jimmy's Painting operates out of a small, rented warehouse in the industrial part of town. He sub-leases a small portion of his shop in the summer to a university student painting crew. Jimmy hopes to build his own shop in the future and purchased some land which he is holding until he can afford to build It is January 10%. Jimmy's bookkeeper is moving out of town and you have been hired to finish off his year-end and to help with his personal tax return, as well as to take on the bookkeeping on an ongoing basis. His previous bookkeeper was keeping tracking his transactions in Excel and has shared with you the December 31* financial statements. During the handover meeting the bookkeeper shared the following information: 1. During the year Jimmy sold an old truck for $10,000+ GST. He had originally purchased it for $17,500. This transaction has not yet been recorded. 2. Jimmy made a large credit sale for painting supplies to an out of town painting store last year. The painting store never paid their invoice and they closed this year. The bookkeeper recorded the sale as bad debt expense and allowance for doubtful accounts. The bookkeeper wasn't sure how to deal with the GST collected on the sale ($200) and PST collected in sale (S280) which is still part of the accounts receivable balance. 3. Jimmy did not make any GST installments during the year. Required: 1. Draft the adjusting journal entries for the missing invoices and for adjustments on notes from the bookkeeper 2. In the individual assignment files, located invoice #104. Compare the invoice to the table of required invoice information on page 16 of RC4022 GST/HST Guide. Identify what information is missing from the invoice. 3. Prepare the December 31" GST return 4. Prepare the December 31" PST return 5. Draft an email to Jimmy advising on the results of your work Submit: 1. An Excel document with your adjusting journal entries and Income Statement Balance Sheet Jimmy's Painting Income Statement (Unaudited) January 1, 20xx to December 31, 20xx Notes 272,423 132,211 56,936 76 Operating revenue Painting sales Painting supplies Painting supplies retail sales Miscellaneous revenue Commission revenue Interest and dividend revenue Rental income Sale of capital assets Total revenue 186 35 1,590 4,981 468,438 Operating expenses Salaries and benefits Insurance Miscellaneous expenses Cost of goods sold Bank service charges Rent 155,717 1,528 914 177,740 6,607 24,000 16,518 944 8,507 2,666 4,000 1,002 532 2,475 25,566 428,716 2 Supplies Telephone Utilities Office supplies Bad debt expense Travel Meals and entertainment Advertising Amortization Total operating expenses 2 Income taxes 7,000 3 Net income 32,722 Income Statement Balance Sheet Jimmy's Painting Balance Sheet (Unaudited) As at December 31, 20xx Notes 18.183 48,273 -8.720 39,553 20,488 1.739 Assets Cash Accounts Receivable Allowance for Doubtful Accounts Net Accounts Receivable Inventory Prepaid expenses Capital assets Vehicle Equipment Computer Equipment Land Accumulated Amortization Total capital assets Total Assets 113,846 27,027 10,279 150,000 -50.618 250,534 330,497 Liabilities Accounts payable Trade accounts payable Payroll source deductions payable GST collected on sales GST paid on purchases PST collected on sales Total accounts payable Visa payable Line of Credit Total Liabilities 27.402 2,336 4,198 -1,289 996 4 33,643 6,382 124.938 164,963 5 Owner's Equity 165,534 INVOICE 1234 Kosdale Road Galloway, BC, VSTOLA Phone: 64.355.9876 INVOICE 1104 DATE: DECEMBER 31, 20XX TO: FOR: John Carter House painting DESCRIPTION HOURS RATE AMOUNT Painting - Journeyman 24 $45 $1,080.00 Painting - Apprentice 24 $25 5600.00 Supplies $840.00 GST $126.00 TOTAL $2,646.00 Send e-transfer to jimmyspainting1975@gmail.com Company Name Total due in 15 days. Overdue accounts subject to a service charge of 1% per month Thank you for your business! my Pa INVOICE 1234 Rosdale Road Galloway, BC, VT04 Phone: 604-555-9876 INVOICE 105 DATE: DECEMBER 31, 20XX TO: FOR: Connie Hathaway Baby's toon painting DESCRIPTION HOURS RATE AMOUNT Painting Jameyman 4 $45 $180.00 Painting - Apprentice 4 S25 $100.00 Supplica $140.00 TOTAL $420.00 Send e-transfer to jimmyspainting1975@ gmail.com Company Name Total due in 15 days. Overdue accounts subject to a service charge of 1% per month Thank you for your business! Jimmy's Painting Jimmy's Painting is an owner-operator run sole proprietorship that operates in Galloway, BC, Jimmy Davis started the company in several years ago. The business originally did primarily household painting services. Jimmy discovered there was a shortage of DIY paint supplies in town and expanded to small retail shop carrying paint and paint supplies. Jimmy's Painting operates out of a small, rented warehouse in the industrial part of town. He sub-leases a small portion of his shop in the summer to a university student painting crew. Jimmy hopes to build his own shop in the future and purchased some land which he is holding until he can afford to build It is January 10%. Jimmy's bookkeeper is moving out of town and you have been hired to finish off his year-end and to help with his personal tax return, as well as to take on the bookkeeping on an ongoing basis. His previous bookkeeper was keeping tracking his transactions in Excel and has shared with you the December 31* financial statements. During the handover meeting the bookkeeper shared the following information: 1. During the year Jimmy sold an old truck for $10,000+ GST. He had originally purchased it for $17,500. This transaction has not yet been recorded. 2. Jimmy made a large credit sale for painting supplies to an out of town painting store last year. The painting store never paid their invoice and they closed this year. The bookkeeper recorded the sale as bad debt expense and allowance for doubtful accounts. The bookkeeper wasn't sure how to deal with the GST collected on the sale ($200) and PST collected in sale (S280) which is still part of the accounts receivable balance. 3. Jimmy did not make any GST installments during the year. Required: 1. Draft the adjusting journal entries for the missing invoices and for adjustments on notes from the bookkeeper 2. In the individual assignment files, located invoice #104. Compare the invoice to the table of required invoice information on page 16 of RC4022 GST/HST Guide. Identify what information is missing from the invoice. 3. Prepare the December 31" GST return 4. Prepare the December 31" PST return 5. Draft an email to Jimmy advising on the results of your work Submit: 1. An Excel document with your adjusting journal entries and Income Statement Balance Sheet Jimmy's Painting Income Statement (Unaudited) January 1, 20xx to December 31, 20xx Notes 272,423 132,211 56,936 76 Operating revenue Painting sales Painting supplies Painting supplies retail sales Miscellaneous revenue Commission revenue Interest and dividend revenue Rental income Sale of capital assets Total revenue 186 35 1,590 4,981 468,438 Operating expenses Salaries and benefits Insurance Miscellaneous expenses Cost of goods sold Bank service charges Rent 155,717 1,528 914 177,740 6,607 24,000 16,518 944 8,507 2,666 4,000 1,002 532 2,475 25,566 428,716 2 Supplies Telephone Utilities Office supplies Bad debt expense Travel Meals and entertainment Advertising Amortization Total operating expenses 2 Income taxes 7,000 3 Net income 32,722 Income Statement Balance Sheet Jimmy's Painting Balance Sheet (Unaudited) As at December 31, 20xx Notes 18.183 48,273 -8.720 39,553 20,488 1.739 Assets Cash Accounts Receivable Allowance for Doubtful Accounts Net Accounts Receivable Inventory Prepaid expenses Capital assets Vehicle Equipment Computer Equipment Land Accumulated Amortization Total capital assets Total Assets 113,846 27,027 10,279 150,000 -50.618 250,534 330,497 Liabilities Accounts payable Trade accounts payable Payroll source deductions payable GST collected on sales GST paid on purchases PST collected on sales Total accounts payable Visa payable Line of Credit Total Liabilities 27.402 2,336 4,198 -1,289 996 4 33,643 6,382 124.938 164,963 5 Owner's Equity 165,534 INVOICE 1234 Kosdale Road Galloway, BC, VSTOLA Phone: 64.355.9876 INVOICE 1104 DATE: DECEMBER 31, 20XX TO: FOR: John Carter House painting DESCRIPTION HOURS RATE AMOUNT Painting - Journeyman 24 $45 $1,080.00 Painting - Apprentice 24 $25 5600.00 Supplies $840.00 GST $126.00 TOTAL $2,646.00 Send e-transfer to jimmyspainting1975@gmail.com Company Name Total due in 15 days. Overdue accounts subject to a service charge of 1% per month Thank you for your business! my Pa INVOICE 1234 Rosdale Road Galloway, BC, VT04 Phone: 604-555-9876 INVOICE 105 DATE: DECEMBER 31, 20XX TO: FOR: Connie Hathaway Baby's toon painting DESCRIPTION HOURS RATE AMOUNT Painting Jameyman 4 $45 $180.00 Painting - Apprentice 4 S25 $100.00 Supplica $140.00 TOTAL $420.00 Send e-transfer to jimmyspainting1975@ gmail.com Company Name Total due in 15 days. Overdue accounts subject to a service charge of 1% per month Thank you for your business