ACCOUNTING CYCLE ASSIGNMENT Due Week 12 Service Business Accounting Cycle On October 1, 2022 a newly incorporated physiotherapy clinic, _(your last name)__ Physiotherapy Inc. is formed. The chart of accounts for _(your last name)__ Physiotherapy Inc. is listed below. Follow the instructions to complete the accounting records for the month of October. __(your last name)__Physiotherapy Inc. Chart of Accounts ASSETS 101 Cash 111 Accounts Receivable 121 Supplies 134 Prepaid Insurance 137 Land 141 Buildings 142 Accumulated Depreciation - Buildings LIABILITIES 202 Accounts Payable 208 Salaries Payable 210 Unearned Revenue 215 Income Tax Payable 222 Mortgage Payable OWNERS EQUITY 301 Common Shares 309 Retained Earnings 311 Dividends Declared REVENUE 410 Physiotherapy Fees Earned EXPENSES 511 Salaries Expense 517 Supplies Expense 523 Depreciation Expense 525 Interest Expense 526 Insurance Expense 531 Utilities Expense 535 Repairs Expense 540 Income Tax Expense 601 Income Summary TRANSACTIONS October: 1 Issued $500,000 of common shares in the new company for cash. 1 Purchased land and a building for the new clinic site worth $150,000 and $397,000 respectively, by making a down payment of $80,000 and securing a mortgage through RBC (Royal Bank of Canada) for the difference. 1 Purchased a four-year insurance policy for $115,200 effective today. 1 Humber Colleges athletic department paid $29,100 in advance for physiotherapy services to be provided to various student-athletes throughout the season. 2 Purchased $1,750 of office supplies from Amazon on account. 14 Paid employees $10,500 representing two weeks salary. 21 Summarized and recorded the billings to customers for the first three weeks of October for physiotherapy service rendered. Billings totaled $72,000. 28 Received $30,000 from clients in partial settlement of accounts billed on the 21st. 28 Paid another $10,500 for two weeks salary. 30 A wall was damaged when moving in. Repaired the damaged wall for $2,690 on account. 30 Paid Amazon for the office supplies purchased on October 2. 31 Paid a total of $2,200 for the months gas, water and electric bill. 31 Paid out dividends to shareholders of $350. 31 Made a mortgage payment of $4,350 to the bank consisting of $1,350 in interest and $3,000 in principal. Use the following information to journalize and post the adjustments for the month. a. One month's insurance coverage was consumed. b. There was $400 of office supplies on hand at the end of the month. c. The building has an estimated useful life of 30 years and a salvage value of $55,000. d. Employees earned $5,250 of unpaid and unrecorded salary. e. A review of the contract with Humber where Humber paid $29,100 in advance on October 1 for physiotherapy services to be provided over the season revealed that one-sixth of the services had been completed in the month. f. The company earned $9,500 of fees that had not yet been billed. g. Income taxes for the month were estimated to be $780. REQUIRED: 1. Prepare journal entries for each transaction. 2. Prepare T accounts and post the transactions. 3. Prepare an adjusted trial balance as at October 31. 4. Prepare an income statement for the month. 5. Prepare a statement of changes in equity. 6. Prepare a classified statement of financial position. 7. Prepare closing journal entries. 8. Post the closing entries to T accounts. 9. Prepare a post closing trial balance. Notes: Only one set of T accounts are required. Do not prepare a separate set of T accounts for requirement #8, for example. Dates for the adjusting journal entries should be the last day of the month. This assignment will preferably be prepared using Microsoft Excel.