this is financial accounting, introduction course. please do asap.

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mary Brown Notes:-

Mary Brown's Notes:

Thank you very much for helping during my absence. I created a list of additional information that will help you out. If you need additional information in the preparation of the July 31 Financial Statement Bob can help.

1) No changes to Insurance, Rent, Depreciation for Trucks, Website and Computer equipment for the month of July 2023, as numbers from the June 30, statements. No additional inventory, assets, and equipment has been purchased for the month of July 2023.

2) I paid Bob and myself a dividend of $12,000.00; dividends were declared July 5 and payable July 20, 2023.

3) Bank statements from Bank of Montreal, and CIBC automatically withdraw and deposit all moneys, interest, interest earned and service charges at the end of the month.

Bob can forward the email of these expenses when he receives them.

4) Income tax of $650.76 is payable on July 31, the tax rate for July to December is 10% of monthly profit.

5) BBRAC has pre-authorized payment with Shell Canada and PetroCanada with an email statement to the company email address Bob will forward these.

6) All Manufacturers Service Weekly Summary of activities which have their payment dates - (7 days after Summary is sent) - There are no parts on the summary since they will send the parts the next day because they are warranty claims and BBARC does not get charged for them.

7) All BBARC customer weekly invoices are received (fully paid by the bank) the Saturday morning to the Cash Account. The BBARC weekly summaries from Sunday to Friday are paid Saturday Mornings (next day).

8) The salaries for both Bob and Mary are $800.00 per week and are paid every two weeks even when they are away on personal trips (last payment was on July 14" for the first 2 weeks of the month and the third week was accrued showing Wages Payable for $1,600.00). The Accounting Fee will be paid on August 2nd

9) On July 28* Bob must repay $3X,000.00 of the Short Term Loan to the bank. The cash for the payment is obtained from the sale of Short Term Investments (Tbills). The X is the last digit of your student number, for instance if your student number ends with 8, the repayment of debt is $38,000. Last digit is 8.

You can call me if you have any questions.

Mary

When the business started Bob and Mary asked you to help create their manual accounting system, answer questions from time to time and do their Year End and taxes for the business. The accounting system is simple, and very basic, recording Journal entries, use of T accounts, creating Trial Balances, Income Statement, and at the end of each month a Balance Sheet (year to date). Mary has a policy of whenever possible having an Accounts Payable balance of zero at the end of the month except for wages payable every two weeks. She likes to pay the bills before their due dates, many times in the last week of the month Bob and Mary take out a very small salary of $800.00 each per week (every weekday Bob earns $160 and Mary another $160, there are no wages accrued during weekend days - wages expense for June were $7,040 because there were 22 weekdays in the month). At the end of the calendar year once the ending balance of Retained Earnings has been set, Bob and Mary have up to 12 months to declare and pay dividends to themselves. The emergency (Problem - opportunity) Mary's sister had their first baby and wanted to go to Vancouver the following week to help her. Since you work from home and live next-door, Mary asked if you could just do the books part time for the last week of the month when she is in Vancouver. BBARC will pay you an accounting fee of $600.00 for your work. You agreed to work between July 221d and 31St until Mary gets back. Mary has completed all journal entries for the first three weeks of July and supplied you with a list of accruals, and payments that must be made for the end of July. Since you are very familiar with the accounts and the set-up, Mary believes you can handle all the monthly adjusting journal entries. Bob will make all the deposits received and will sign all the cheques and make all electronic payments that must be made during Mary's absence. Bob Brown Appliance Repair Company Ltd Statement of Retained Earnings June 30th2023 Retained Earnings, June 1st2023 plus: Net Income less: Dividends Retained Earnings, June 30th2023 \begin{tabular}{r} $96,143.15 \\ $5,856.85 \\ $0.00 \\ \hline$102,000.00 \\ \hline \end{tabular} Parts and supplies used for these service calls are delivered directly to BBARC the next day to replenish the manufacturers inventory that BBARC has on hand for their service calls (Note that this is manufacturers consignment inventory, BBARC only gets paid for the service call). During the day Bob can get calls directly from the manufacturer for emergency repairs which must be complete by the end of the day, and of course gets a premium (bonus of SIX0.00 per call, where X is equal to your last digit of your student number - if your student number end in " 2 " then the premium is $120.00 ) for these repairs. Student number here given is 8 . Any question asking for end of student number here is 8 . BBARC has regular customers that call and send messages from the Website, they pay with Debit or with Credit cards for the service call, and they are billed for parts used (these are not covered by manufacturer's warranties). The bank deposits the amounts of all these services into BBARC bank Cash account at the end of the week (on Saturdays). BBARC has a snall inventory of older parts that are still being used. BBARC wants to bring it down to almost zero because appliances are getting more electronic, and the older parts are becoming obsolete. Bob gets new supplies and parts from a third-party appliance supplier and has a corporate account, the supplier emails BBARC at the end of the week the amount owing, and Mary does an electronic transfer before the next business day of the full amount owing. These are the cost of goods for these customers' business. As you can see Bob can be very busy sometimes working over 1415 hours some days. Appendix: Invoices and Mary's notes Note: $1X0.00 requires you to replace the X with the last digit of your student number, which is 8 . Use 8 as number. For the work that Bob does for each manufacturer, after each completed repair an invoice is automatically generated, Bob gets a weekly summary of all the work completed and gets payment seven days later by electronic funds transfer from each of the manufacturers. You are given a copy of both Income Statement and Statement of Financial Position as of June 30, 2023, and the trial balance from July 1 to July 21, 2023 (so journal entries are up to date, as well as T account postings). You are responsible for updating the books from Saturday July 22 and creating all the statements for the end of July. These will include Journal entries, updating of T accounts, adjusting journal entries, create a Trial Balance as of July 31 before and after adjusting journal entries, and then conclude your work by preparing the Income Statement, Statement of Retained Earnings and Statement of Financial Position for July 31 after adjustments. Required: Prepare the accounting records for Bob Brown Appliance Repair Company Note: this task is based on the analysis of very extensive narrative and detailed project documents. The next pages have all the documents you received between Saturday July 22 " and Monday July 31st, both days included so you can prepare the financial statements of BBARC (use 2 decimal places, if needed round up the figures to the next cent). Some of the amounts depend on the last digit of your student number. (Which is 8 ) When a number is presented as $00,$30 and $2,X10 if your last digit is 7 , you must consider these amounts as $700,$370 and S2,710. The last digit is 8 in this case, and what's you'll be using as your number. Sample General Journal (assuming the last digit of your student number is 0 ) Financial Statements:- Income Statement Bob Brown Appliance Repair Company LTD For month June 30th 2023 Note: Totals are $262,114.79+1X0 times 11 , where X is the rast ungit vi your ordent number Once again, the last digit is 8 . Use 8 . Note: $10.00 requires you to replace the X with the last digit of your student number. Which is 8 . Use 8 as number. KitchenAid Note: $1X0.00 requires you to replace the X with the last digit of your student number. Which is 8 . So use 8 as the number. BBARC Weekly Service Activity Summary July 15 - 21 BBARC Weekly Service Activity Summary July 2228 BBARC Weekly Service Activity Summary July 2931 This is the amount of Servise Charges for your Busines Actoust 12441254258 For the Month of July 594.95 for senvicer charget The amouat has been ether taken cat or deporitid to your Cinb sovount. To: BBARC Accounting Department From: Canadian Imperial Bank of Commerce Date: July 31 This is the amount of Service Charges for your Business Account 1478-1598-267 For the Month of July $141,25 bank service charges. Interest charges for the loan of $8.97 will be taken out Cash Account. The amount has already been taken out of the Cash account listed in this email. Note: $8X.97 requires you to replace the X with the last digit of your student number. 8 is the last digit of the number. Chart of Accounts \begin{tabular}{|l|l|} \hline Current Assets: & Capital Assets: \\ Cash & Computers \\ Accounts Receivable Customers & Accumulated Depreciation Computers \\ Accounts Receivable LG & Truck \\ Accounts Receivable Samsung & Accumulated Depreciation Truck \\ Accounts Receivable Kitchen Aid & Website \\ Inventory & Accumulated Depreciation Website \\ Prepaid Insurance & Revenue \\ Prepaid Rent & Revenue \\ Short Term Investments (Tbills) & Other Revenue Interest (bank) \\ \hline Expenses & Shareholders Equity \\ Accounting Fee Expense & Share Capital \\ Bank Service Expense & Retained Earnings \\ Cost of Goods Sold & Dividends \\ Depreciation Expenses Website & Liabilities \\ Depreciation Expenses Computers & Accounts Payable Appliance Supplies \\ Depreciation Expenses Truck & Accounting Fees Payable \\ Gas Expenses & Income Tax Payable \\ Income Tax Expense & Short Term Coan payable \\ Insurance Expense & Wages Payable \\ Interest Expense & \\ Internet Expense & \\ Office Supplies Expense & Other (Temp): \\ Phone Expense & Income Summary \\ Rent Expense & \\ Wage Expense & \\ \hline \end{tabular} STEP 1: Prepare the Financial Statements by doing the following (you decide on the order to follow: 1. Check and use the Chart of Accounts provided (do not create new accounts). 2. Prepare the General Journal entries for the days between July 22d and 315 (all journal entries including AJE). Prepare Closing Entries for the month of July to continue with business in the month of August as the next period. 3. Post all transactions to the T-accounts and prepare a trial balance showing the balance of each of these accoats for the month of July (end of Month), 4. Prepare the Financial Statements in good form for the month of July: Income Statement, Statement of Owners Equity (Retained Earnings), and Statement of Financial Position (Balance Sheet). Cash flow statement is not required. STEP 2: Analyze the financial statements and answer the following questions: 1. Make one clear suggestions of how the business can improve its after tax net income 2. With the data of the financial statements that you have completed, is the business viable? Explain why, based on the results reported in the financial statements you prepared, you think this is a business with future for their owners. 7) All BBARC customer weekly invoices are received (fully paid by the bank) the Saturday morning to the Cash Account. The BBARC weekly summaries from Sunday to Friday are paid Saturday Mornings (next day). 8) The salaries for both Bob and Mary are $800.00 per week and are paid every two weeks even when they are away on personal trips (last payment was on July 14 " for the first 2 weeks of the month and the third week was accrued showing Wages Payable for $1,600.00 ). The Accounting Fee will be paid on August 2nd 9) On July 28 Bob must repay $3X,000.00 of the Short Term Loan to the bank. The cash for the payment is obtained from the sale of Short Term Investments (Tbills). The X is the last digit of your student number, for instance if your student number ends with 8 , the repayment of debt is $38,000. Last digit is 8 . You can call me if you have any questions. Mary Note: Totals are $262,114.79+1X0 times 11 , where X is the last digit of your student number To: BBARC Accounting Department From: Rogers Billing Department ROGERS This is an email iavoice of cellphone services provided to BBARC s openations foe the month of July for $30.75. This is to confirm that the amount wall be taken out of your Cash Account on Jaly 31 Thank you for your business: Note: $30.75 requires you to replace the X with the last digit of your student number. 8 is the last digit of the number. To: BBARC Accousting Departusent From Bell Canada Billing Depantanent This is an email invoice for BBARC Businets Internet services for be moent of Jely fer $122.00. This is to confirm thit the amount will be taken out of your Cach Actuat on fly 31 Thank you for your basiness: Bob Brown Appliance Repair Company Ltd. Statement of Financial Position June 30th2023 SRMIUNE Note: $1X0.00 requires you to replace the X with the last digit of your student number. 8 is the last digit of the number. Bookkeeping for a small business organization Case: Bob Brown Appliance Repair Company July 2023 Bob Brown owns Bob Brown Appliance Repair Company (BBARC) which has been in business over the past five years in the Greater Toronto Area (GTA). The business is very successful, Mary (Bob's wife is the accountant, she pays the bills, works with the manufacturers, receives shipments of warranty and other parts from manufacturers, answers Web Site inquires for services calls and helps with the business wherever possible, but she cannot do repairs. Business: Over eighty percent of the business is servicing manufacturer's warranties for LG, Samsung, and Kitchen Aid. During the day, Mary gets emails from these manufactures of the service calls for the next day, with a brief description of the problem and then places these calls into a route around the city so that Bob doesn't have to drive all over the city for the repairs for the day, this is to keep costs down and be able to do more service calls. The summer months are the busiest months for repairs since the full-time service staff that work for the Manufacturers take their vacations. First thing in the morning Mary calls the customers to make sure that they will be home in the four-hour window for Bob to fix their appliances. When warranty work is completed for each manufacturer's customer the material used and labour is recorded on the laptop in the truck after each call to the manufacturer thus closing the repair, and this information is added to the ongoing weekly bill that will be paid to BBARC the following Friday (next week) for this work completed. Bob Brown Appliance Repair Company Ltd Statement of Retained Earnings lune 30th2023 Financial Statements: Trail Balance as of July 21,2023 Bob Brown Appliance Repair Company Ltd Financial Statements: Trail Balance as of July 21,2023 Bob Brown Appliance Repair Company Ltd Income Statement KitchenAid Note: $1X0.00 requires you to replace the X with the last digit of your student number. Which is 8 . Note: $1X0.00 requires you to replace the X with the last digit of your student number. Which is 8 . Mary Brown's Notes: Thank you very much for helping during my absence. I created a list of additional information that will help you out. If you need additional information in the preparation of the July 31 Financial Statement Bob can help. 1) No changes to Insurance, Rent, Depreciation for Trucks, Website and Computer equipment for the month of July 2023, as numbers from the June 30, statements. No additional inventory, assets, and equipment has been purchased for the month of July 2023. 2) I paid Bob and myself a dividend of $12,000.00; dividends were declared July 5 and payable July 20 , 2023. 3) Bank statements from Bank of Montreal, and CIBC automatically withdraw and deposit all moneys, interest, interest earned and service charges at the end of the month. Bob can forward the email of these expenses when he receives them. 4) Income tax of $650.76 is payable on July 31 , the tax rate for July to December is 10% of monthly profit. 5) BBRAC has pre-authorized payment with Shell Canada and PetroCanada with an email statement to the company email address Bob will forward these. 6) All Manufacturers Service Weekly Summary of activities which have their payment dates - (7 days after Summary is sent) - There are no parts on the summary since they will send the parts the next day because they are warranty claims and BBARC does not get charged for them. Capital Assets: \begin{tabular}{|c|c|c|c|} \hline Truck & $95,000.00 & & \\ \hline Less: Accumulated Depreciation & $23,750.00 & $71,250.00 & \\ \hline Computes & $12,500.00 & & \\ \hline Less: Accumulated Depreciation & $4,861.11 & $7,638.89 & \\ \hline Website & $6,500.00 & & \\ \hline Less: Accumulated Depreciation & \$ 2,600.00 & $3,900.00 & \\ \hline \begin{tabular}{l} Total Capital Assets \\ Total All Assets \end{tabular} & & & \begin{tabular}{l} \$ 82,788.89 \\ $218,300.82 \\ \end{tabular} \\ \hline \end{tabular} Liabilities Accounts Payable Appliance Supplies Wages Payable Short Term Loan payable Income Tax Payable - end of next month Total Liabilities Shareholder's Equity Share Capital Bob Brown Retained Earnings Total Shareholder's Equity Total Liabilities \& Shareholder's Equity $50,000.00$102,000.00 \begin{tabular}{l} $152,000,00 \\ $218,300.82 \\ \hline \end{tabular} BBARC Weekly Service Activity Summary July15-21 Tot BRARC Accounting Department From Shell Cannd Daleiduly 2 s Thank you for your payment, Shell Canada Retrocinad Date: Juby 3 : Thank you for your payment. Petrocanada Note: $8X.89 requires you to replace the x with the last digit of your student number, which is 8 as the digit. \begin{tabular}{|c|c|c|c|} \hline \multicolumn{2}{|c|}{\begin{tabular}{l} Revenue \\ Other Revenue Interest (bank) \end{tabular}} & \multicolumn{2}{|l|}{$27,315.00} \\ \hline \multicolumn{2}{|l|}{ Total revenue } & & $27,533.75 \\ \hline \multicolumn{3}{|l|}{ Expenses } & \\ \hline Cost of Goods Sold & & $6,533.75 & \\ \hline Gas Expenses & & $1,430.00 & \\ \hline Interest Expense & & $48.97 & \\ \hline Insurance Expense & & $650.00 & \\ \hline Wage Expense & & $7,040.00 & \\ \hline Phone Expense & & $303.00 & \\ \hline Internet Expense & & $122.00 & \\ \hline Rent Expense & & $2,500.00 & \\ \hline Office Supplies Expense & & $154.00 & \\ \hline \multirow{2}{*}{\multicolumn{4}{|c|}{ Depreciation Expenses: }} \\ \hline & & & \\ \hline Website & $108.33 & & \\ \hline Computers & $347.22 & & \\ \hline Truck & $1,583.33 & & \\ \hline \multicolumn{2}{|l|}{ Total Depreciation Expense } & $2,038.88 & \\ \hline \multicolumn{3}{|l|}{ Total Expenses } & $21,026.14 \\ \hline \multicolumn{3}{|l|}{ Income Before Income Taxes } & $6,507.61 \\ \hline \multirow{2}{*}{\multicolumn{3}{|c|}{\begin{tabular}{l} Income Tax Expense ( 10%) End of Month \\ Net Income (after income taxes) \end{tabular}}} & $650.76 \\ \hline & & & $5,856.85 \\ \hline \end{tabular} Sample General Journal (assuming the last digit of your student number is 0 ) When the business started Bob and Mary asked you to help create their manual accounting system, answer questions from time to time and do their Year End and taxes for the business. The accounting system is simple, and very basic, recording Journal entries, use of T accounts, creating Trial Balances, Income Statement, and at the end of each month a Balance Sheet (year to date). Mary has a policy of whenever possible having an Accounts Payable balance of zero at the end of the month except for wages payable every two weeks. She likes to pay the bills before their due dates, many times in the last week of the month Bob and Mary take out a very small salary of $800.00 each per week (every weekday Bob earns $160 and Mary another $160, there are no wages accrued during weekend days - wages expense for June were $7,040 because there were 22 weekdays in the month). At the end of the calendar year once the ending balance of Retained Earnings has been set, Bob and Mary have up to 12 months to declare and pay dividends to themselves. The emergency (Problem - opportunity) Mary's sister had their first baby and wanted to go to Vancouver the following week to help her. Since you work from home and live next-door, Mary asked if you could just do the books part time for the last week of the month when she is in Vancouver. BBARC will pay you an accounting fee of $600.00 for your work. You agreed to work between July 221d and 31St until Mary gets back. Mary has completed all journal entries for the first three weeks of July and supplied you with a list of accruals, and payments that must be made for the end of July. Since you are very familiar with the accounts and the set-up, Mary believes you can handle all the monthly adjusting journal entries. Bob will make all the deposits received and will sign all the cheques and make all electronic payments that must be made during Mary's absence. Bob Brown Appliance Repair Company Ltd Statement of Retained Earnings June 30th2023 Retained Earnings, June 1st2023 plus: Net Income less: Dividends Retained Earnings, June 30th2023 \begin{tabular}{r} $96,143.15 \\ $5,856.85 \\ $0.00 \\ \hline$102,000.00 \\ \hline \end{tabular} Parts and supplies used for these service calls are delivered directly to BBARC the next day to replenish the manufacturers inventory that BBARC has on hand for their service calls (Note that this is manufacturers consignment inventory, BBARC only gets paid for the service call). During the day Bob can get calls directly from the manufacturer for emergency repairs which must be complete by the end of the day, and of course gets a premium (bonus of SIX0.00 per call, where X is equal to your last digit of your student number - if your student number end in " 2 " then the premium is $120.00 ) for these repairs. Student number here given is 8 . Any question asking for end of student number here is 8 . BBARC has regular customers that call and send messages from the Website, they pay with Debit or with Credit cards for the service call, and they are billed for parts used (these are not covered by manufacturer's warranties). The bank deposits the amounts of all these services into BBARC bank Cash account at the end of the week (on Saturdays). BBARC has a snall inventory of older parts that are still being used. BBARC wants to bring it down to almost zero because appliances are getting more electronic, and the older parts are becoming obsolete. Bob gets new supplies and parts from a third-party appliance supplier and has a corporate account, the supplier emails BBARC at the end of the week the amount owing, and Mary does an electronic transfer before the next business day of the full amount owing. These are the cost of goods for these customers' business. As you can see Bob can be very busy sometimes working over 1415 hours some days. Appendix: Invoices and Mary's notes Note: $1X0.00 requires you to replace the X with the last digit of your student number, which is 8 . Use 8 as number. For the work that Bob does for each manufacturer, after each completed repair an invoice is automatically generated, Bob gets a weekly summary of all the work completed and gets payment seven days later by electronic funds transfer from each of the manufacturers. You are given a copy of both Income Statement and Statement of Financial Position as of June 30, 2023, and the trial balance from July 1 to July 21, 2023 (so journal entries are up to date, as well as T account postings). You are responsible for updating the books from Saturday July 22 and creating all the statements for the end of July. These will include Journal entries, updating of T accounts, adjusting journal entries, create a Trial Balance as of July 31 before and after adjusting journal entries, and then conclude your work by preparing the Income Statement, Statement of Retained Earnings and Statement of Financial Position for July 31 after adjustments. Required: Prepare the accounting records for Bob Brown Appliance Repair Company Note: this task is based on the analysis of very extensive narrative and detailed project documents. The next pages have all the documents you received between Saturday July 22 " and Monday July 31st, both days included so you can prepare the financial statements of BBARC (use 2 decimal places, if needed round up the figures to the next cent). Some of the amounts depend on the last digit of your student number. (Which is 8 ) When a number is presented as $00,$30 and $2,X10 if your last digit is 7 , you must consider these amounts as $700,$370 and S2,710. The last digit is 8 in this case, and what's you'll be using as your number. Sample General Journal (assuming the last digit of your student number is 0 ) Financial Statements:- Income Statement Bob Brown Appliance Repair Company LTD For month June 30th 2023 Note: Totals are $262,114.79+1X0 times 11 , where X is the rast ungit vi your ordent number Once again, the last digit is 8 . Use 8 . Note: $10.00 requires you to replace the X with the last digit of your student number. Which is 8 . Use 8 as number. KitchenAid Note: $1X0.00 requires you to replace the X with the last digit of your student number. Which is 8 . So use 8 as the number. BBARC Weekly Service Activity Summary July 15 - 21 BBARC Weekly Service Activity Summary July 2228 BBARC Weekly Service Activity Summary July 2931 This is the amount of Servise Charges for your Busines Actoust 12441254258 For the Month of July 594.95 for senvicer charget The amouat has been ether taken cat or deporitid to your Cinb sovount. To: BBARC Accounting Department From: Canadian Imperial Bank of Commerce Date: July 31 This is the amount of Service Charges for your Business Account 1478-1598-267 For the Month of July $141,25 bank service charges. Interest charges for the loan of $8.97 will be taken out Cash Account. The amount has already been taken out of the Cash account listed in this email. Note: $8X.97 requires you to replace the X with the last digit of your student number. 8 is the last digit of the number. Chart of Accounts \begin{tabular}{|l|l|} \hline Current Assets: & Capital Assets: \\ Cash & Computers \\ Accounts Receivable Customers & Accumulated Depreciation Computers \\ Accounts Receivable LG & Truck \\ Accounts Receivable Samsung & Accumulated Depreciation Truck \\ Accounts Receivable Kitchen Aid & Website \\ Inventory & Accumulated Depreciation Website \\ Prepaid Insurance & Revenue \\ Prepaid Rent & Revenue \\ Short Term Investments (Tbills) & Other Revenue Interest (bank) \\ \hline Expenses & Shareholders Equity \\ Accounting Fee Expense & Share Capital \\ Bank Service Expense & Retained Earnings \\ Cost of Goods Sold & Dividends \\ Depreciation Expenses Website & Liabilities \\ Depreciation Expenses Computers & Accounts Payable Appliance Supplies \\ Depreciation Expenses Truck & Accounting Fees Payable \\ Gas Expenses & Income Tax Payable \\ Income Tax Expense & Short Term Coan payable \\ Insurance Expense & Wages Payable \\ Interest Expense & \\ Internet Expense & \\ Office Supplies Expense & Other (Temp): \\ Phone Expense & Income Summary \\ Rent Expense & \\ Wage Expense & \\ \hline \end{tabular} STEP 1: Prepare the Financial Statements by doing the following (you decide on the order to follow: 1. Check and use the Chart of Accounts provided (do not create new accounts). 2. Prepare the General Journal entries for the days between July 22d and 315 (all journal entries including AJE). Prepare Closing Entries for the month of July to continue with business in the month of August as the next period. 3. Post all transactions to the T-accounts and prepare a trial balance showing the balance of each of these accoats for the month of July (end of Month), 4. Prepare the Financial Statements in good form for the month of July: Income Statement, Statement of Owners Equity (Retained Earnings), and Statement of Financial Position (Balance Sheet). Cash flow statement is not required. STEP 2: Analyze the financial statements and answer the following questions: 1. Make one clear suggestions of how the business can improve its after tax net income 2. With the data of the financial statements that you have completed, is the business viable? Explain why, based on the results reported in the financial statements you prepared, you think this is a business with future for their owners. 7) All BBARC customer weekly invoices are received (fully paid by the bank) the Saturday morning to the Cash Account. The BBARC weekly summaries from Sunday to Friday are paid Saturday Mornings (next day). 8) The salaries for both Bob and Mary are $800.00 per week and are paid every two weeks even when they are away on personal trips (last payment was on July 14 " for the first 2 weeks of the month and the third week was accrued showing Wages Payable for $1,600.00 ). The Accounting Fee will be paid on August 2nd 9) On July 28 Bob must repay $3X,000.00 of the Short Term Loan to the bank. The cash for the payment is obtained from the sale of Short Term Investments (Tbills). The X is the last digit of your student number, for instance if your student number ends with 8 , the repayment of debt is $38,000. Last digit is 8 . You can call me if you have any questions. Mary Note: Totals are $262,114.79+1X0 times 11 , where X is the last digit of your student number To: BBARC Accounting Department From: Rogers Billing Department ROGERS This is an email iavoice of cellphone services provided to BBARC s openations foe the month of July for $30.75. This is to confirm that the amount wall be taken out of your Cash Account on Jaly 31 Thank you for your business: Note: $30.75 requires you to replace the X with the last digit of your student number. 8 is the last digit of the number. To: BBARC Accousting Departusent From Bell Canada Billing Depantanent This is an email invoice for BBARC Businets Internet services for be moent of Jely fer $122.00. This is to confirm thit the amount will be taken out of your Cach Actuat on fly 31 Thank you for your basiness: Bob Brown Appliance Repair Company Ltd. Statement of Financial Position June 30th2023 SRMIUNE Note: $1X0.00 requires you to replace the X with the last digit of your student number. 8 is the last digit of the number. Bookkeeping for a small business organization Case: Bob Brown Appliance Repair Company July 2023 Bob Brown owns Bob Brown Appliance Repair Company (BBARC) which has been in business over the past five years in the Greater Toronto Area (GTA). The business is very successful, Mary (Bob's wife is the accountant, she pays the bills, works with the manufacturers, receives shipments of warranty and other parts from manufacturers, answers Web Site inquires for services calls and helps with the business wherever possible, but she cannot do repairs. Business: Over eighty percent of the business is servicing manufacturer's warranties for LG, Samsung, and Kitchen Aid. During the day, Mary gets emails from these manufactures of the service calls for the next day, with a brief description of the problem and then places these calls into a route around the city so that Bob doesn't have to drive all over the city for the repairs for the day, this is to keep costs down and be able to do more service calls. The summer months are the busiest months for repairs since the full-time service staff that work for the Manufacturers take their vacations. First thing in the morning Mary calls the customers to make sure that they will be home in the four-hour window for Bob to fix their appliances. When warranty work is completed for each manufacturer's customer the material used and labour is recorded on the laptop in the truck after each call to the manufacturer thus closing the repair, and this information is added to the ongoing weekly bill that will be paid to BBARC the following Friday (next week) for this work completed. Bob Brown Appliance Repair Company Ltd Statement of Retained Earnings lune 30th2023 Financial Statements: Trail Balance as of July 21,2023 Bob Brown Appliance Repair Company Ltd Financial Statements: Trail Balance as of July 21,2023 Bob Brown Appliance Repair Company Ltd Income Statement KitchenAid Note: $1X0.00 requires you to replace the X with the last digit of your student number. Which is 8 . Note: $1X0.00 requires you to replace the X with the last digit of your student number. Which is 8 . Mary Brown's Notes: Thank you very much for helping during my absence. I created a list of additional information that will help you out. If you need additional information in the preparation of the July 31 Financial Statement Bob can help. 1) No changes to Insurance, Rent, Depreciation for Trucks, Website and Computer equipment for the month of July 2023, as numbers from the June 30, statements. No additional inventory, assets, and equipment has been purchased for the month of July 2023. 2) I paid Bob and myself a dividend of $12,000.00; dividends were declared July 5 and payable July 20 , 2023. 3) Bank statements from Bank of Montreal, and CIBC automatically withdraw and deposit all moneys, interest, interest earned and service charges at the end of the month. Bob can forward the email of these expenses when he receives them. 4) Income tax of $650.76 is payable on July 31 , the tax rate for July to December is 10% of monthly profit. 5) BBRAC has pre-authorized payment with Shell Canada and PetroCanada with an email statement to the company email address Bob will forward these. 6) All Manufacturers Service Weekly Summary of activities which have their payment dates - (7 days after Summary is sent) - There are no parts on the summary since they will send the parts the next day because they are warranty claims and BBARC does not get charged for them. Capital Assets: \begin{tabular}{|c|c|c|c|} \hline Truck & $95,000.00 & & \\ \hline Less: Accumulated Depreciation & $23,750.00 & $71,250.00 & \\ \hline Computes & $12,500.00 & & \\ \hline Less: Accumulated Depreciation & $4,861.11 & $7,638.89 & \\ \hline Website & $6,500.00 & & \\ \hline Less: Accumulated Depreciation & \$ 2,600.00 & $3,900.00 & \\ \hline \begin{tabular}{l} Total Capital Assets \\ Total All Assets \end{tabular} & & & \begin{tabular}{l} \$ 82,788.89 \\ $218,300.82 \\ \end{tabular} \\ \hline \end{tabular} Liabilities Accounts Payable Appliance Supplies Wages Payable Short Term Loan payable Income Tax Payable - end of next month Total Liabilities Shareholder's Equity Share Capital Bob Brown Retained Earnings Total Shareholder's Equity Total Liabilities \& Shareholder's Equity $50,000.00$102,000.00 \begin{tabular}{l} $152,000,00 \\ $218,300.82 \\ \hline \end{tabular} BBARC Weekly Service Activity Summary July15-21 Tot BRARC Accounting Department From Shell Cannd Daleiduly 2 s Thank you for your payment, Shell Canada Retrocinad Date: Juby 3 : Thank you for your payment. Petrocanada Note: $8X.89 requires you to replace the x with the last digit of your student number, which is 8 as the digit. \begin{tabular}{|c|c|c|c|} \hline \multicolumn{2}{|c|}{\begin{tabular}{l} Revenue \\ Other Revenue Interest (bank) \end{tabular}} & \multicolumn{2}{|l|}{$27,315.00} \\ \hline \multicolumn{2}{|l|}{ Total revenue } & & $27,533.75 \\ \hline \multicolumn{3}{|l|}{ Expenses } & \\ \hline Cost of Goods Sold & & $6,533.75 & \\ \hline Gas Expenses & & $1,430.00 & \\ \hline Interest Expense & & $48.97 & \\ \hline Insurance Expense & & $650.00 & \\ \hline Wage Expense & & $7,040.00 & \\ \hline Phone Expense & & $303.00 & \\ \hline Internet Expense & & $122.00 & \\ \hline Rent Expense & & $2,500.00 & \\ \hline Office Supplies Expense & & $154.00 & \\ \hline \multirow{2}{*}{\multicolumn{4}{|c|}{ Depreciation Expenses: }} \\ \hline & & & \\ \hline Website & $108.33 & & \\ \hline Computers & $347.22 & & \\ \hline Truck & $1,583.33 & & \\ \hline \multicolumn{2}{|l|}{ Total Depreciation Expense } & $2,038.88 & \\ \hline \multicolumn{3}{|l|}{ Total Expenses } & $21,026.14 \\ \hline \multicolumn{3}{|l|}{ Income Before Income Taxes } & $6,507.61 \\ \hline \multirow{2}{*}{\multicolumn{3}{|c|}{\begin{tabular}{l} Income Tax Expense ( 10%) End of Month \\ Net Income (after income taxes) \end{tabular}}} & $650.76 \\ \hline & & & $5,856.85 \\ \hline \end{tabular} Sample General Journal (assuming the last digit of your student number is 0 )