Upon graduation from high school, Justin Bieber immediately accepted a job as an electrician's assistant for a large local electrical repair company. After three years of hard work, Justin received an electrician's licence and decided to start his own business. He had saved $12,000, which he invested in the business. His lawyer had advised him to start as a corporation. First, he transferred this amount from his savings account to a business bank account for Bieber Electric Repair Company Incorporated and was issued shares. He then purchased a used panel truck for $9,000 cash and second-hand tools for $1,500; rented space in a small building; inserted an ad in the local paper; and opened the doors on October 1, 20X1. Immediately, Justin was very busy; after one month, he employed an assistant. Although Justin knew practically nothing about the financial side of the business, he realized that a number of reports were required and that costs and collections had to be controlled carefully. At December 31, 20X1, prompted in part by concern about his income tax situation, Justin recognized the need for financial statements. His wife, Jane, developed some financial statements for the business. On December 31, 20X1, with the help of a friend, she gathered the following data for the three months just ended. Bank account deposits of collections for electric repair services totalled $32,000. The following cheques had been written: electrician's assistant, $8,500: payroll taxes, $175; supplies purchased and used on jobs. $9,500; oil, gas, and maintenance on truck, $1,200; insurance, $700; rent, $500; utilities and telephone, $825; and miscellaneous expenses (including advertising). $600. Also, uncollected invoices to customers for electric repair services amounted to $3,000. The $200 rent for December had not been paid. The average income tax rate is 30 percent. Justin estimated the cost of using the truck and tools (depreciation) during the three months to be $1,200. As of December 31, Repair Company Incorporated had $11,500 in cash. Required: 1) Prepare a quarterly income statement for Bieber Electric Repair Company Incorporated for the three months of October through December 20X1. 2) Prepare a statement of financial position for Bieber Electric Repair Company Incorporated as at December 31, 20X1. 3) What financial reporting objective/bias would Justin likely hold? Explain. 4) If you were a bank, would you lend money to Bieber Electric Repair Company Incorporated? Explain. In making your decision, what other information would you (as a banker) would likely request