Janice Satchels is a physiotherapist who owns a small practice in Kingston. She provides physio services and sells orthotic shoe supports to her clients. She has asked you to help her prepare an income statement that would be acceptable to the Canada Revenue Agency (CRA). Janice's assistant (who has very little accounting experience) maintained all the records and developed the following statement for the year ended December 31, 2019. Satchels Physio Inc. Income and Expense Statement 2019 $160,400 34,700 Physio fees collected Orthotic sales collected Expenses paid: Owner's Compensation Purchase of orthotics for resale Office rent Equipment rent Utilities Telephone Wages for assistant Profit for the year 48,000 28,250 12,000 25,200 1,500 1,360 26,000 142 310 S 52 790 Since the above statement was prepared on a 100% cash basis, you realized that it would not be acceptable to CRA. Consequently, you conducted an investigation of the records of the current year as well the previous year and you discovered the following: a. Of the $160,400 of physio fees collected in 2019, $15,600 was for work performed in 2018 b. On December 31, 2019, uncollected physio fees for work performed during 2019 were $8,700. c. Janice sells both custom and standard orthotic supports to her customers. Custom orders are paid in full by the customer at the time of the order and take approximately 6 weeks to arrive. There were no outstanding custom orders on January 1, 2019. $2,500 of the fees collected in 2019 relate to deposits for orders to be received in 2020. d. When Janice started her physio practice in 2016 she entered into a 10-year agreement with Office Supplies Inc. to rent all of her equipment. The monthly rental costs are $2,100, paid at the end of each month. e. In December 2019 Janice signed an agreement to rent one new piece of equipment. The equipment was delivered on Dec 1, 2019, however the first monthly lease payment of $300 wasn't paid until January 1, 2020. f. Office rent is paid at the rate of $1,000 on the 1st of each month. g. On December 31, 2019, a count of orthotic inventory indicated $5,600 was on hand. It was estimated that on January 1, 2019, inventory of $3,100 was on hand. h. Janice's assistant started March 1, 2019. On December 31, 2019 wages amounting to $1,400 remained unpaid. I. The unpaid utilities bill for December, 2019 was expected to be $320. No amounts were unpaid at the end of 2018. j. Rather than take a salary, Janice declared and paid herself dividends of $4,000 each month for all of 2019. k. The tax rate for the corporation is 20% and no taxes have been paid to date in fiscal 2019. Required: Prepare an income statement for 2019 on an accrual basis (single or multi-step). Use the same categories of expenses as the initial income statement and show your work/calculations to support any changes in amounts from the statement prepared by the assistant. Janice Satchels is a physiotherapist who owns a small practice in Kingston. She provides physio services and sells orthotic shoe supports to her clients. She has asked you to help her prepare an income statement that would be acceptable to the Canada Revenue Agency (CRA). Janice's assistant (who has very little accounting experience) maintained all the records and developed the following statement for the year ended December 31, 2019. Satchels Physio Inc. Income and Expense Statement 2019 $160,400 34,700 Physio fees collected Orthotic sales collected Expenses paid: Owner's Compensation Purchase of orthotics for resale Office rent Equipment rent Utilities Telephone Wages for assistant Profit for the year 48,000 28,250 12,000 25,200 1,500 1,360 26,000 142 310 S 52 790 Since the above statement was prepared on a 100% cash basis, you realized that it would not be acceptable to CRA. Consequently, you conducted an investigation of the records of the current year as well the previous year and you discovered the following: a. Of the $160,400 of physio fees collected in 2019, $15,600 was for work performed in 2018 b. On December 31, 2019, uncollected physio fees for work performed during 2019 were $8,700. c. Janice sells both custom and standard orthotic supports to her customers. Custom orders are paid in full by the customer at the time of the order and take approximately 6 weeks to arrive. There were no outstanding custom orders on January 1, 2019. $2,500 of the fees collected in 2019 relate to deposits for orders to be received in 2020. d. When Janice started her physio practice in 2016 she entered into a 10-year agreement with Office Supplies Inc. to rent all of her equipment. The monthly rental costs are $2,100, paid at the end of each month. e. In December 2019 Janice signed an agreement to rent one new piece of equipment. The equipment was delivered on Dec 1, 2019, however the first monthly lease payment of $300 wasn't paid until January 1, 2020. f. Office rent is paid at the rate of $1,000 on the 1st of each month. g. On December 31, 2019, a count of orthotic inventory indicated $5,600 was on hand. It was estimated that on January 1, 2019, inventory of $3,100 was on hand. h. Janice's assistant started March 1, 2019. On December 31, 2019 wages amounting to $1,400 remained unpaid. I. The unpaid utilities bill for December, 2019 was expected to be $320. No amounts were unpaid at the end of 2018. j. Rather than take a salary, Janice declared and paid herself dividends of $4,000 each month for all of 2019. k. The tax rate for the corporation is 20% and no taxes have been paid to date in fiscal 2019. Required: Prepare an income statement for 2019 on an accrual basis (single or multi-step). Use the same categories of expenses as the initial income statement and show your work/calculations to support any changes in amounts from the statement prepared by the assistant