Homework answers / question archive / QUICKBOOKS 2019 ASSIGNMENT 2 BOB’S BACK HOES STUDENT EXERCISE 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

QUICKBOOKS 2019 ASSIGNMENT 2 BOB’S BACK HOES STUDENT EXERCISE 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

Accounting

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QUICKBOOKS 2019 ASSIGNMENT 2 BOB’S BACK HOES

STUDENT EXERCISE

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.

Chart of Accounts:

Account		Type	Description
10500	Chequing Account	Bank	Chequing Account
11000	Prepaid Insurance	Other current asset	Prepaid Insurance
12000	Accounts Receivable	Accounts Receivable	Accounts Receivable
13000	Home Office Equipment	Fixed Asset	Home office Equipment
13010	Computer Equipment additions	Fixed Asset	Computer equipment additions
13020	Computer Equipment Depreciation	Fixed Asset	Computer equipment Depreciation
13510	Office Equipment Additions	Fixed Asset	Office Equipment Additions
13520	Office Equipment Depreciation	Fixed Asset	Office Equipment Depreciation
14990	Undeposited Funds	Other Current assets	Undeposited funds
15000	Equipment	Fixed Asset	Equipment
15010	Equipment additions	Fixed Asset	Equipment Additions
15020	Equipment depreciation	Fixed Asset	Equipment Depreciation
20000	Accounts Payable	Accounts Payable	Accounts Payable
25500	GST/HST Payable	Other Current Liability	HST Payable
30000	Opening Bal Equity	Equity	Opening bal Equity
32000	Bob Brown Capital	Equity	Bob Brown capital
30800	Bob Brown Withdrawals	Equity	Bob Brown Withdrawals
39000	Retained Earnings	Equity	Retained Earnings
40100	Back Hoe fees earned	Income	Fees
60400	Depreciation expense	Expense	Depreciation Expense
61000	Advertising Expense	Expense	Advertising Expense
62000	Back Hoe Equipment Rental	Expense	Back Hoe Equipment Rental
62500	Back Hoe Gas & Oil	Expense	Back Hoe Gas & Oil
63000	Bank fees	Expense	Bank fees
64000	Insurance	Expense	Insurance
64250	Liability Insurance	Expense	Liability Insurance
65000	Home Office Expense	Expense	Home Office Expense
65250	Office Supplies	Expense	Office supplies
65500	Utilities Expense	Expense	Utilities Expense
65750	Telephone Expense	Expense	Telephone Expense
66200	Professional fees	Expense	Professional fees
66500	Accounting	Expense	Accounting Fees
67000	Repairs	Expense	Repairs
68200	Taxes	Expense	Taxes
68300	Federal	Expense	Federal taxes
68400	Provincial	Expense	Provincial

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 15^th day of each month to Brian’s Leasing.

The Following Transactions took place in January:

Date	Transaction	Source
3	Purchased a computer by cheque from Impact Computers $4,600 (plus HST)	Chq 1
4	Bob Contributed a ladder to the Business Valued at $400 Fair Market value	Journal Entry #2
6	Completed cash Job for Maple City construction, issued receipt for $2500 (plus HST). Receive Payment in full and deposited cash in bank.	Sales Receipt 101
7	Bob paid expenses for the business: Telephone $198.45 (plus HST $20.00) to Telus. Overwrite calculated HST	Chq 2
	Electricity $430 (plus HST) to Origin Power	Chq 3
	Advertising $2,000 (plus HST) to leader Papers	Chq 4
8	Completed Job for JP Construction, 158 Keil Drive, Chatham, Ontario N7L1A1 (519) 555-1234. Invoiced $2000 (Plus HST), Terms Net 30.	Invoice 201
11	Completed cash job for Big Brothers Construction, issued receipt for 4,400.00 (plus HST). Received payment in full and deposited cash in bank.	Sales receipt 102
	Bob purchased office furniture on credit Inv B333 $700 (plus HST) from Bizquip. Terms Net 30	Bill
12	Bob paid expenses for the business: Fuel $214(plus HST) to Echo fuels	Chq 5
	Insurance $600 to CUG Insurance for 12 Months liability Insurance. Expense January Insurance and set up Prepaid Insurance for Balance.	Chq 6
	Bob drew $800 cash for his own use.	Chq 7
15	Paid Brian’s Leasing for the lease of the backhoe.	Chq 8

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

Using the bank statement below, prepare the bank reconciliation at January 16

		CIBC
		Downtown
Account Name Bob’s Back Hoes			Account No 333067
			Statement for January 1-16
Date		Debit	Credit	Balance
January 2	Cash/Chqs		25,000.00	25,000.00	CR
4	0001	5,198.00		19,802.00	CR
6	Cash/Chqs		2,825.00	22,627.00	CR
8	0003	485.90		22,141.10	CR
11	Cash/Chqs		4,972.00	27,113.10	CR
	0002	218.45		26,894.65	CR
	0007	800.00		26,094.65	CR
13	Bank fee	20.00		26,074.65	CR
	0006	600.00		25,474.65	CR

Check figures:

Net Income: $3,987.55
Book Value of Chequing Account after bank reconciliation: $20,712.83

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QUICKBOOKS 2019 ASSIGNMENT 2 BOB’S BACK HOES STUDENT EXERCISE 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

Accounting

Overview

Accounting Information

Problem Statement

Step 1

Step 2

Step 3

Bank Statement

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QUICKBOOKS 2019 ASSIGNMENT 2 BOB’S BACK HOES STUDENT EXERCISE 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

Accounting

Overview

Accounting Information

Problem Statement

Step 1

Step 2

Step 3

Bank Statement

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Custom new solution created by our subject matter experts

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Answer Preview

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