Part 1

1a
2c
3b
4d
5b
6d
7c
8c

9a
10 d
11 a
12 d
13 b
14 a
B&B Repair Services Ltd
Journal Entries
For the month ending Aug 31st
Debit
Aug 1 , 2021 Advertising Expenses $ 250
Cash
Aug 2, 2021 Deffered Revenue 1260
Service Revenue
Aug 3, 2021 Rent Expense 980
Cash
Aug 6, 2021 Cash 1200
Accounts Receivable
Aug 10, 2021Salaries Payable 3120
Cash
Aug 13, 2021Cash 2800
Service Revenue
Aug 15, 2021Equipment 2000
Bank Loan Payable
Aug 20, 2021Accounts Payable 2000
Cash
Aug 22, 2021Salaries Expense 2900
Cash
Aug 24, 2021Accounts Receivable 3760
Service Revenue
Aug 27, 2021Cash 780
Deffered Revenue
Aug 30, 2021Bank Loan Payable 500
Interest Expense 50
Cash
Aug 31, 2021Income Tax Expense 380
Cash
Aug 31, 2021Retained Earnings 400
Stock Dividend Distributable
Aug 31, 2021Stock Dividend Distributable 400
Common Shares
B&B Repair Services Ltd
Trial Balance
For the month ending Aug 31
Debit ($) Credit ($)
1 Cash 1,440.00
2 Accounts Receivable 5,760.00
3 Equipments 12,000.00
 4 Vehicles 25000
5 Supplies 1030
6 Salaries Expense 2900
7 Rent Expense 980
8 Advertising Expense 250
9 Income Tax Expense 380
10 Stock Dividend Distributable 400
11 Interest Expense 50
11 Accounts Payable 300
12 Accumulated depreciation—equipment 2000
13 Accumulated depreciation—vehicles 5000
14 Bank loan payable 3500
15 Common Shares 14400
16 Deffered Revenue 780
17 Retained Earnings 16890
18 Salaries Payable 880
19 Service Revenue 4060
50,190.00 47810
Credit

250

1260

980

1200

3120

2800

2000

2000

2900

3760

780

550

380

400

400
FIFO

Purchase Cost of Goods Sold

Date Units Rate($) Total($) Units Rate($)

Jan 1
Jan 20 60 4.4 264

Jan 21 60 4
5 4.4
Jul 25 30 4.2 126

Oct 20 45 4.8 216

Nov 15 10 4.4
30 4.2
35 4.8
Total

Avg Cost

Purchase Cost of Goods Sold

Date Units Rate($) Total($) Units Rate($)
Jan 1
Jan 20 60 4.4 264
Jan 21 65 4.2
Jul 25 30 4.2 126
Oct 20 45 4.8 216
Nov 15 75 4.5
Total

a $ 262.00
b $ 273.00
c $ 45.00
d $ 386.00
st of Goods Sold Balance
Total($) Units Rate($) Total($)

15 4 60
15 4
60 4.4 324

262 10 4.4 44
10 4.4
30 4.2 170
10 4.4
30 4.2
45 4.8 386

338 10 4.8 48
600 1032

st of Goods Sold Balance

Total($) Units Rate($) Total($)
15 4 60
75 4.2 315
273 10 4.2 42
40 4.2 168
85 4.5 382.5
337.5 10 4.5 45
610.5 1012.5
 Journal Entries

a Debit Credit

Jan 1, 2015 Equipment 120,000

Cash 120,000

Dec 31, 2021 Depreciation Expense

Accumulated Depreciation - Equipment

Mar 31, 2022Depreciation Expense

Accumulated Depreciation - Equipment

Mar 31, 2022Cash 28000

Equipment 28000

b Debit Credit

Jan 1, 2014 Vehicles 38000

Cash 38000

Jul 31, 2022 Depreciation Expense 19750

Accumulated Depreciation - Vehicles 19750

Jul 31, 2022 Cash 10000

Vehicles 10000
Yearly depreciation rate 9000
Total Depreciation expense till Dec 31, 2021 54000
Total Depreciation expense till March 31, 2022 56250

Yearly depreciation rate 3000

Total Depreciation expense till Jul 31, 2022 19750
 CANFORD CORPORATION
Statement of Cash Flows
For period ending Dec 31, 2021

Operating Activities
Net Income -50000
Adjustments to reconcile Net Income to net cash from operating activities
Depreciation 34000
Increase in Accounts Recie -26000
Increase in Prepaid Insura -4000
Increase in Accounts Payab 10000 14000
Net Cash used for operating activities -36000

Investing Activities
Loss from Land Sale -20000
Proceeds from Equipment Sale 10000
Net Cash used for investing activities -10000

Financial Activities
Issue of Bonds 30,000
Issue of Shares 50000
Cash Dividends -18000
Net Cash provided by financing activities 62,000

Net Cash 16000

Cash, Jan 1 62000

Cash, Jan 31 78000
operating activities
a Current Ratio

2020 3.01960784
2021 4.17322835

b Receivables turnover

2020 15.5339806
2021 13.6923077

c Inventory turnover

2020 9.47368421
2021 7.53846154

d    Debt to total assets

2020 0.18861789
2021 0.32135417

e Times interest earned

2020 10.2857143
2021 4.82882883

f Free cash flow

2020
2021

g g)Gross profit margin

2020 0.4375
2021 0.4494382

h h)Profit margin
 2020 0.08125
2021 0.09550562

i Asset Turnover

2020 1.38528139
2021 1.13015873

j j)Return on assets

2020 0.11255411
2021 0.10793651
490,000 450,000
85,000 45,000 50,000

960,000 615,000
308,500 116,000

85,000 65,000
27,750 8,750
21,250 16,250

400,000 350,000
890,000 800,000
85,000 65,000

960,000 615,000 540,000