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FANTASY GARDEN FLOWERS Jane Bloom had always loved gardening and displaying her flower arrangements throughout her home and those of her friends. When her job at the mill ended due to downsizing she had no idea what to do$.$ Not long after her layoff, Jane was having coffee with her neighbor who was admiring the flower arrangement she had just brought over when neighbour said that she should open a flower shop. Jane laughed and said that it was a hobby, she would never be able to run a business, but the idea had taken root. Jane started to research information on starting up a small business, and found that there was an organization called New Hope for Community Futures that provided assistance for small start up businesses. With assistance Jane created a business plan for opening a small storefront shop in a local strip mall that would provide floristservices as well as a selection of giftware. She plansto operate the business primarily by herself with some part time staff. She had some money set aside from her severance package from the mill, but it would not be enough to start her business so she needed to borrow money from the bank. Jane had determined that the best course of action for her start up was to operate the business as a proprietorship and if the business did well she would look at incorporating in the future. Jane has registered for both GST $(5\%)$ and PST $(7\%)$; she will be a quarterly filer for GST and a monthly filer for PST$.$ The following is a listing of the events that happened during the year. June $16$ Jane met with her banker and received preliminary approval for a $$25,000\mathrm{.}00$ business start$$up loan at prime $+2\%($prime is currently at $3\%).$ She will have to put up a personal guarantee as she has no business history. July $31.)$ Jane deposited $$45,000\mathrm{.}00$ from her personal savings into a newly opened business chequing account. $2.)$ The start$$up loan wasfinalized $($with an effective date of July $3),$ and $$25,000\mathrm{.}00$ was deposited into the business chequing account. The loan is to repaid over $5$ years. $3.)$ Jane met with the mall manager and picked up the rental agreement, as a signing incentive the first month$$s rent was waived. Monthly rent will be $$1,000\mathrm{.}00$ plus GST per month starting August $1,2012.4.)$ Jane also met with Joe from Joe$$s Contracting at the shop to finalize the plans for the renovations required in shop. Joe anticipates the work will take about $10$ days and cost $$15,000\mathrm{.}00$ plus GST$.$ Jane wrote a cheque for a deposit that covered $25\%$ of the estimated cost $($reminder taxes are not included on deposits$).$ Chq $1.$ Record as leasehold improvements. July $61.)$ Jane flew to Vancouver to visit two large wholesalers one that specialized in boutique giftware and the other a large floral supplier. Jane anticipates being able to stock her shop with beautiful one of a kind gifts. She wants to keep her shop affordable but unique. Total purchases made at the floral supplier, Florist Inc. included all the supplies she needs to create floral arrangements, including a nice selection of vases, baskets, floral tape$/$picks$,$ cards, wrap, etc. She was also able to find a selection of beautiful large display vases for the coolers to hold her fresh flowers, and some display shelves. The total cost was $$7,325\mathrm{.}00$ plus GST $($$$2,500\mathrm{.}00$ of the total was for store fixtures$)$ which Jane paid by a company cheque # $2.$ Since the store fixtures are not for resale we should self assess the PST on these purchases. The second supplier, Vancouver Gifts Gallery was a greatsource of unique gift items, ranging from small trinkets to larger items like candle holders, vases, and decorative items. They also had a line of beautiful line of floral themed jewellery and accessories. After spending the better part of the afternoon Jane finally completed the selection for the opening of her new shop. Total purchase price of all the merchandise was $$17,258\mathrm{.}00$ plus GST issued cheque # $3$ July $7$ Prior to flying home there was one laststop Jane wanted to make;she went to an artistshowroom called Artist Showcase that specialized in greeting cards. Jane found a fabulous series of all occasion cards that were based on a whimsical garden theme, perfect for her shop. She selected a display rack and a variety of cards; the total cost was $$3,675\mathrm{.}00$ plus taxes. The display rack alone was $$950\mathrm{.}00.$ However when Jane went to pay she found out that since she was a new client they would not accept a personal cheque. Jane had applied for new personal BMO credit card, so she had that for emergencies allowing her to pay for the full balance on her credit card. Again the display rack is not for resale and tax should be self assessed. Credit owner contributions for credit card purcha

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