Business Accounting Cycle work. Student Number can be 33179
Service Business Accounting Cycle On August 1, 2019 a newly incorporated private medical clinic, (your last name) Healthcare Ltd. is formed. The chart of accounts for (vour last name) Healthcare Ltd. is listed below. Follow the instructions to complete the accounting records for the month of August. (your last name)_Healthcare Ltd. 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 Medical 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 This should match the last 5 digits of your student ID + $650,000 August: Issued $XXX,XXX of common shares in the new company for cash. Purchased land and a building for the new clinic site worth $271,000 and $320,000 respectively, by making a down payment of $75,300 and securing a mortgage through TD Bank for the difference. Purchased a three-year insurance policy for $99,900 effective today. A large private corporation paid $52,575 in advance for medical services to be provided to its top executives for the year. Purchased $800 of office supplies from Staples on account. Paid employees $18,200 representing two weeks' salary. Summarized and recorded the billings to customers for the first three weeks of August for medical services rendered. Billings totaled $120,000 Received $24,000 from clients in partial settlement of accounts billed on the 21st. Paid another $18,200 for two weeks' salary. There was a severe windstorm in the month and the roof was damaged. Repaired the roof for $6,500 on account. Paid Staples for the office supplies purchased on August 2. Paid a total of $5,400 for the month's utilities. Paid out dividends to shareholders of $1,000. 31 Made a mortgage payment of $7,250 to the bank consisting of $1,800 in interest and $5,450 in principal. 31 Use the following information to journalize and post the adjustments for the month. One month's insurance coverage was consumed. b. There were $300 of office supplies on hand at the end of the month. The building has an estimated useful life of 25 years and a salvage value of $72,000. Employees earned $9,100 of unpaid and unrecorded salary. A review of the contract with the large corporate client that paid $52,575 in advance on August 1, revealed that one-fifth of the services had been completed in the month. The company earned $8,300 of fees that had not yet been billed. Income taxes for the month were estimated to be $1,020. REQUIRED: 1. Prepare journal entries for each transaction (including adjusting journal entries). 2. Prepare T accounts and post the transactions. 3. Prepare an adjusted trial balance as at August 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, however assignments prepared by hand are also acceptable. + If applicable, round to the nearest dollar
