Overview In this case-study, you, the student, will set up a new service company file using the Easy Step Interview found by clicking on Detailed Start after clicking to create a new company. As you navigate through the Easy Step Interview, you will decide the best answers to the interview based on the information presented here. You will also have the opportunity to practice setting up a Chart of Accounts, and completing Journal entries, sales, Bills, and Cheques. As an extended activity, you may be required to complete the Bank Reconciliation. Accounting Information Bob Brown has decided to start a business of his own, doing backhoe work for clients beginning January 1. He will run the business from his home at 123 Any Street, Chatham, Ontario N7M 1A1. He has obtained his Business Number and registered for Goods and Services tax. Tax rates are GST 5%, and HST 13% - Bob will use the calendar year as his fiscal year. - His first HST quarterly report period will end March 31. - Bob will only do business in Southwest Ontario. - This is a Service Based Business with no inventory. To assist with setting up the Chart of Accounts, choose 'General Service-Based Business' as the industry in the Easy Step Interview process. - Set up a Service Item called Back Hoe Fees, Description Back Hoe Services, Default Tax will be HST Only. - Bob Expects to invoice some Customers and collect Payment later. - Bob will sometimes buy products and services on credit and pay his vendors later. - Attached is a Chart of Accounts Bob has been given to use with his business. QuickBooks 2019 - Assignment 2 QuickBooks 2019 - Assignment 2 Transactions: On 3 January, Bob deposits $25,000 in a separate Bank Account for the Business at CIBC, downtown branch. (Create journal Entry \# 1 to Debit Chequing Account and Credit B Brown, Capital) Bob has decided to lease the backhoe. The monthly payment of $2,000 (plus HST) is made on the 15th day of each month to Brian's Leasing. The Following Transactions took place in January: Page 3 of 5 QuickBooks 2019 - Assignment 2 Problem Statement Step 1: You have been hired to set up a Service Company File for Bob and set up the chart of Accounts as provided by the Consulting Accountant. Step 2: You have been directed to complete the transactions for the first two weeks of January. Step 3: You receive the bank statement and process the Reconciliation. NOTE - Only complete the steps as assigned by your instructor. Required Items for Each Step Step 1 - Create the file Bob's Back Hoes - Your Name". This will help distinguish your report from the other students' assignments. - Add, Edit, Delete or Make Inactive Accounts to match the Chart of Accounts Step 2 - Process the transactions for January (including the initial capital contribution). - Print (or create a pdf) the following reports for the period January 1-16: - Chart of Accounts - Income Statement - Balance Sheet - Journals Step 3 - Complete Bank Reconciliation using the Bank Statement dated January 16 found on the next page - Print (or create a pdf) the following report for the Period January 1-16: - Bank Reconciliation Detailed Bank Statement Check figures: - Net Income: \$3,987.55 - Book Value of Chequing Account after bank reconciliation: $20,712.83