On November 1, 2021 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 November _(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 1 21 26 28 29 November: 1 Issued$850,000.00 of common shares in the new company for cash. 1 Purchased land and a building for the new clinic site worth $435,000 and $200,000 respectively, by making a down payment of $90,000 and securing a mortgage through RBC for the difference. 1 Purchased a two-year insurance policy for $26,100 effective today. Maple Leaf Sports & Entertainment paid $49,000 in advance for physiotherapy services to be provided to Pascal Siakam for the basketball season. 3 Purchased $1,300 of office supplies from Staples on account. 12 Paid employees $7,500 representing two weeks' salary. Summarized and recorded the billings to customers for the first three weeks of November for physiotherapy services rendered. Billings totaled $92,000. Paid another $7,500 for two weeks' salary. Received $55,000 from clients in partial settlement of accounts billed on the 21st. An early ice storm caused some minor damages to the roof. A roofing company repaired the damages and invoiced $1,950 for the work. Paid Staples for the office supplies purchased on November 3. Paid a total of $4,600 for the month's utilities. 30 Paid out dividends to shareholders totaling $3,000. 30 Made a mortgage payment of $3,220 to the bank consisting of $1,700 in interest and $1,520 in principal. Use the following information to journalize and post the adjustments for the month. One month's insurance coverage was consumed. b. There were $700 of office supplies on hand at the end of the month. The building has an estimated useful life of 30 years and a salvage value of $30,000. Employees earned $1,500 of unpaid and unrecorded salary. A review of the contract with Maple Leaf Sports & Entertainment, revealed that one- seventh of the services were provided to Siakam in the month. f. The company earned $19,200 of fees that had not yet been billed. g. Income taxes for the month were estimated to be $2,450. 29 30 a. C. d. e. REQUIRED 1. Prepare journal entries for each transaction with descriptions. (Including adjusting journal entries). 2. Prepare T accounts and post the transactions. 3. Prepare an adjusted trial balance as at November 30. 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 accounts are required. Do not prepare a separate set of Taccounts for requirement #8, for example. + Dates for the adjusting joumal entries should be the last day of the month. This assignment should be prepared using Microsoft Excel. Within the Excel workbook, use a separate worksheet for each of the required, except for #2 and #8 which will appear on the same worksheet. Do not duplicate T-Accounts. + If applicable, round to the nearest dollar
