Note: $10.00 requires you to replace the X with the last digit of your student number. BBARC Weekly Service Activity Summary July 15 - 21 BBARC Weekly Service Activity Summary liulv 22 - 28 BBARC Weekly Service Activity Summary July 2931 To: BBARC Accounting Department From: Bank of Montreal Date: July 31 BMO Bank of Montreal This is the amount of Service Charges for your Business Account 1234-1234-258 For the Month of July $84.75 for services charges Earned \$218.75 interest for the month of July. 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. 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 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. 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 $1X0.00 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. 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 small 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 14-15 hours some days. 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 Trail 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. ss 8 wages expense for June were $7,040 because there were 22 weekdays in the month). 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. Note: $10.00 requires you to replace the X with the last digit of your student number. Weekly Ser Activity \begin{tabular}{cl} & \multicolumn{2}{l}{ Service Ca } \\ 16 & 12051 \\ 16 & 12052 \\ 17 & 12053 \\ 17 & 12054 \\ 17 & 12055 \\ 18 & 12056 \\ 18 & 12057 \\ 18 & 12058 \\ 18 & 12059 \\ 18 & 12060 \\ 19 & 12061 \\ 19 & 12062 \\ 19 & 12063 \\ 20 & 12064 \\ 20 & 12065 \\ 20 & 12066 \\ 21 & 12067 \\ 21 & 12068 \end{tabular} Kitchentid Note: $10.00 requires you to replace the X with the last digit of your student number. Weekly Ser Activity \begin{tabular}{cl} & \multicolumn{2}{l}{ Service Ca } \\ 16 & 12051 \\ 16 & 12052 \\ 17 & 12053 \\ 17 & 12054 \\ 17 & 12055 \\ 18 & 12056 \\ 18 & 12057 \\ 18 & 12058 \\ 18 & 12059 \\ 18 & 12060 \\ 19 & 12061 \\ 19 & 12062 \\ 19 & 12063 \\ 20 & 12064 \\ 20 & 12065 \\ 20 & 12066 \\ 21 & 12067 \\ 21 & 12068 \end{tabular} Kitchentid Financial Statements: Trail Balance as of July 21,2023 Bob Brown Appliance Repair Company Ltd Income Statement Sample General Journal (assuming the last digit of your student number is 0 ) 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. 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 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. 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 $1X0.00 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. 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 small 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. 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 Trail 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. ( wages expense for June were $7,040 because there were 22 weekdays in the month). A 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. Note: $10.00 requires you to replace the X with the last digit of your student number. BBARC Weekly Service Activity Summary July 15 - 21 BBARC Weekly Service Activity Summary July 22 - 28 BBARC Weekly Service Activity Summary July 2931 cial Statements: Income Statement Bob Brown Appliance Repair Company Ltd For the month June 302023 Bob Brown Appliance Repair Company Ltd. Statement of Financial Position lune 30th2023 Note: $10.00 requires you to replace the X with the last digit of your student number. BBARC Weekly Service Activity Summary July 15 - 21 BBARC Weekly Service Activity Summary liulv 22 - 28 BBARC Weekly Service Activity Summary July 2931 To: BBARC Accounting Department From: Bank of Montreal Date: July 31 BMO Bank of Montreal This is the amount of Service Charges for your Business Account 1234-1234-258 For the Month of July $84.75 for services charges Earned \$218.75 interest for the month of July. Sample General Journal (assuming the last digit of your student number is 0 ) Appendix: Invoices and Mary's notes 1-Jul 8-Jul Ju cial Statements: Income Statement Bob Brown Appliance Repair Company Ltd For the month June 302023 Bob Brown Appliance Repair Company Ltd. Statement of Financial Position lune 30th2023 Note: $10.00 requires you to replace the X with the last digit of your student number. BBARC Weekly Service Activity Summary July 15 - 21 BBARC Weekly Service Activity Summary July 22 - 28 BBARC Weekly Service Activity Summary July 2931 Date: July 28 Purchases of Gasoline payment Due July 28. The amount of $412.00 will be taken out of BBARC Cash Accounts as per the Authorised payment. To: BBARC Accounting Department From: PetroCanada Billing Department Date: July 31 Purchases of Gasoline payment Due July 31. The amount of \$8X.89 will be taken out of BBARC Cash Accounts as per the Authorised payment. Date Charge July 31$8X.89 Total $8X.89 Thank you for your payment. PetroCanada 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 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 14th 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 28th 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 7 , the repayment of debt is $37,000. You can call me if you have any questions. 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 22nd 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. 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 Trail 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 22nd 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. When a number is presented as $X00,$3X0 and $2,X10 if your last digit is 7, your term project must consider these amounts as $700,$370 and $2,710. Read all details with care. 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 22nd and 31st (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 accounts 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. STEP 3: Do the assignments (eClass Quiz) where you type (fill in the blanks) the amounts reported in the financial statements, provide answers to step 2 questions and upload a file with only the specific document required ( T account of cash, journal entries between July 22nd and July 31st without AJE, AJE for the month of July, Income Statement of July, or Statement of Financial Position as of July 31st ). Note: $10.00 requires you to replace the X with the last digit of your student number. BBARC Weekly Service Activity Summary July 15 - 21 BBARC Weekly Service Activity Summary liulv 22 - 28 BBARC Weekly Service Activity Summary July 2931 To: BBARC Accounting Department From: Bank of Montreal Date: July 31 BMO Bank of Montreal This is the amount of Service Charges for your Business Account 1234-1234-258 For the Month of July $84.75 for services charges Earned \$218.75 interest for the month of July. 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. 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 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. 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 $1X0.00 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. 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 small 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 14-15 hours some days. 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 Trail 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. ss 8 wages expense for June were $7,040 because there were 22 weekdays in the month). 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. Note: $10.00 requires you to replace the X with the last digit of your student number. Weekly Ser Activity \begin{tabular}{cl} & \multicolumn{2}{l}{ Service Ca } \\ 16 & 12051 \\ 16 & 12052 \\ 17 & 12053 \\ 17 & 12054 \\ 17 & 12055 \\ 18 & 12056 \\ 18 & 12057 \\ 18 & 12058 \\ 18 & 12059 \\ 18 & 12060 \\ 19 & 12061 \\ 19 & 12062 \\ 19 & 12063 \\ 20 & 12064 \\ 20 & 12065 \\ 20 & 12066 \\ 21 & 12067 \\ 21 & 12068 \end{tabular} Kitchentid Note: $10.00 requires you to replace the X with the last digit of your student number. Weekly Ser Activity \begin{tabular}{cl} & \multicolumn{2}{l}{ Service Ca } \\ 16 & 12051 \\ 16 & 12052 \\ 17 & 12053 \\ 17 & 12054 \\ 17 & 12055 \\ 18 & 12056 \\ 18 & 12057 \\ 18 & 12058 \\ 18 & 12059 \\ 18 & 12060 \\ 19 & 12061 \\ 19 & 12062 \\ 19 & 12063 \\ 20 & 12064 \\ 20 & 12065 \\ 20 & 12066 \\ 21 & 12067 \\ 21 & 12068 \end{tabular} Kitchentid Financial Statements: Trail Balance as of July 21,2023 Bob Brown Appliance Repair Company Ltd Income Statement Sample General Journal (assuming the last digit of your student number is 0 ) 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. 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 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. 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 $1X0.00 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. 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 small 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. 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 Trail 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. ( wages expense for June were $7,040 because there were 22 weekdays in the month). A 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. Note: $10.00 requires you to replace the X with the last digit of your student number. BBARC Weekly Service Activity Summary July 15 - 21 BBARC Weekly Service Activity Summary July 22 - 28 BBARC Weekly Service Activity Summary July 2931 cial Statements: Income Statement Bob Brown Appliance Repair Company Ltd For the month June 302023 Bob Brown Appliance Repair Company Ltd. Statement of Financial Position lune 30th2023 Note: $10.00 requires you to replace the X with the last digit of your student number. BBARC Weekly Service Activity Summary July 15 - 21 BBARC Weekly Service Activity Summary liulv 22 - 28 BBARC Weekly Service Activity Summary July 2931 To: BBARC Accounting Department From: Bank of Montreal Date: July 31 BMO Bank of Montreal This is the amount of Service Charges for your Business Account 1234-1234-258 For the Month of July $84.75 for services charges Earned \$218.75 interest for the month of July. Sample General Journal (assuming the last digit of your student number is 0 ) Appendix: Invoices and Mary's notes 1-Jul 8-Jul Ju cial Statements: Income Statement Bob Brown Appliance Repair Company Ltd For the month June 302023 Bob Brown Appliance Repair Company Ltd. Statement of Financial Position lune 30th2023 Note: $10.00 requires you to replace the X with the last digit of your student number. BBARC Weekly Service Activity Summary July 15 - 21 BBARC Weekly Service Activity Summary July 22 - 28 BBARC Weekly Service Activity Summary July 2931 Date: July 28 Purchases of Gasoline payment Due July 28. The amount of $412.00 will be taken out of BBARC Cash Accounts as per the Authorised payment. To: BBARC Accounting Department From: PetroCanada Billing Department Date: July 31 Purchases of Gasoline payment Due July 31. The amount of \$8X.89 will be taken out of BBARC Cash Accounts as per the Authorised payment. Date Charge July 31$8X.89 Total $8X.89 Thank you for your payment. PetroCanada 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 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 14th 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 28th 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 7 , the repayment of debt is $37,000. You can call me if you have any questions. 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 22nd 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. 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 Trail 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 22nd 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. When a number is presented as $X00,$3X0 and $2,X10 if your last digit is 7, your term project must consider these amounts as $700,$370 and $2,710. Read all details with care. 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 22nd and 31st (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 accounts 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. STEP 3: Do the assignments (eClass Quiz) where you type (fill in the blanks) the amounts reported in the financial statements, provide answers to step 2 questions and upload a file with only the specific document required ( T account of cash, journal entries between July 22nd and July 31st without AJE, AJE for the month of July, Income Statement of July, or Statement of Financial Position as of July 31st )