a September 2021 Economic events for the first month of the business. F21 1 Begins practice as a dentist and invests $9,000 cash in the business bank account. 2 Purchases equipment for $36,000. Paid cash of $2,000 plus a note payable of $34,000. 3 Pays rent for office space, $3,000 for the month. 7 Hires receptionist to start next week. Wages paid end of month. Agreed $500 per week 8 Purchases dental supplies on account for $2,000. The supplies might last a few months. 9 Receives cash of $4,000 from patients for services performed this day. 10 Pays internet and website expense for the month $2,700. 14 Bills patients $7,300 for services performed this week. 18 Pays supplier of dental supplies $400 on account. 19 Withdraws $4,000 cash from the business for personal use. 20 Receives $3,000 from patients on account. 25 Bills patients $6,000 for services performed this week. 30 Pays the following expenses for the month a office wages expense $1,500 b phone expense $ 200 30c the furniture and equipment has an estimated useful life of 10 years 30d there are $1,300 of supplies remaining at the end of the month. First month of note payable is "interest free". After that payments of $2,000 per month plus interest. The New Dentist F21 A new dentist starts business. So much happened the first month! They are not sure if they are making profit. They had to put money into the business at the start to buy equipment and pay the first month of office rent. Then they fixed a lot of teeth but also had a lot of costs to pay. They think they might be losing money! They put some cash in a business bank account to start. Now they have less money! Of course some money was taken out to pay personal costs during the month - like apartment rent. They want to know if they are making enough money to lease a BMW now that they have their own business. 1 Complete the attached tabular anlysis of the transactions of the business for the period shown below. 2 Prepare Financial Statements for the busienss for the period. 3 Answer the questions below a) b) c) a) Did the business make a Profit for the month? How much? How do you know? Use accouting terms. State specific numbers. Base your answer only on facts given in this questio Limit your answer to the space below. maximum 20 words. b) How much would you pay to buy this business? Explain your answer. Please give advice to a young dentist who wants to take over an existing Dental business. They have a chance to buy this very new business. (assets, liabilities, office lease, customers, etc.) Base your answer only on facts given in this questio Limit your answer to the space below. maximum 40 words. (hopefully less than 20 - just the basics here) c) Can the owner afford to lease a BMW car for $600 per month plus insurance $300 per month? Explain. They need to withdraw $4,000 per month to pay living expenses (rent, food, clothes, gym, etc) and they must pay $1,000 per month for a student loan. The business has to pay $2,000 per month for its loan. Base your answer only on facts given in this questio Limit your answer to the space below. max 20 words. Only facts. Introductory accounting, not advanced financial planning. (mainly summarize $ how much they will spend and where money will come from)
