Fleet Foot Podiatry is a sole proprietorship clinic that is owned by Usain Bolt, who recently...

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Fleet Foot Podiatry is a sole proprietorship clinic that is owned by Usain Bolt, who recently retired from running and became a podiatrist in Thunder Bay. They produce quarterly financial statements and the last set they produced was at June 30, 2022. Two months have elapsed and their August 31, 2022 randomly ordered accounts look like: ● ● ● ● Account Accounts Payable Office Supplies Rent Expense Depreciation Expense Capital, Usain Bolt Unearned Revenue. Tools Podiatry Revenue Cash Wages Expense EXHIBIT 4.3 Account Accumulated Depreciation, Tools Office Supplies Expense Teaching revenue Salaries expense Rent expense Communication expense Totals The following are a list of transactions that transpired in September 2022. 1. Prepare the initial journal entries needed by each transaction below in good form. (11 marks) ● Sept 1 Did work for a patient and immediately collected $1,400. Sept 1 Hired a new X-ray technician to start Sept 22 who will be paid $2,100 every 14 days. Sept 2 Paid $1,950 for office supplies purchased on account last month. Sept 2 Purchased office supplies for cash, $2,200. Sept 3 Bought a machine that makes shoe insoles for $34,000 with a note payable. Sept 3 Collected $34,200 as a deposit for work to be done at a foot conference in January. Sept 4 Usain Bolt withdrew $3,250 cash to fly home to Jamaica and see his mom. Cash Supplies Prepaid insurance Equipment Accumulated depreciation, equipment Accounts payable Uneamed food services revenue Notes payable Hailey Walker, capital Hailey Walker, withdrawals Food services revenue Insurance expense Supplies expense Depreciation expense ,equipment Salaries payable Interest expense Interest payable Accounts receivable Totals Sept 7 Performed services for a patient and billed $4,000, but was not paid. Sept 15 Usain Bolt withdrew cash of $1,200 for personal use. Sept 20 Performed services for a patient on credit, billed $3,300 Sept 30 Was paid for the services performed on Sept 7. 2. Using the August 31 account balances above, the September transactions, and the following information, create a worksheet that shows columns for the unadjusted trial balance at Sept 30 2022, and columns for the adjusted trial balance at Sept 30 2022. Provide calculations for each total outside the worksheet for part marks. (7 marks) (in the below format) Dr Debit 8,070 3,600 2,400 6,000 $3,000.00 6,200.00 400.00 12,000.00 Cr 230 23,300 Organico Work Sheet For Month Ended March 31, 2020 Trial Balance 6,400.00 8,000.00 1,500.00 23,300 200 3,000 d) 250 6,000 10,000 Step 3 Prepare Adjusted Trial Balance e) Dr Credit $3,000.00 Adjustments a) 100 1,050 b) c) 200 28,000.00 35 5,650.00 450.00 g) 1,800 3,575 400.00 b) a) e) Cr 1,050 100 c) 200 250 140 3,575 35 Adjusted Trial Balance Dr Cr 8,070 2,550 2,300 6,000 600 1,540 1,000 230 100 1,050 200 35 1,800 25,475 200 200 2,750 6,000 10,000 5,850 300 140 35 25,475 Totals ● . ● ● ● ● 3,575 2010 MCWill Education 3,575 25,475 25,475 The tools have an estimated life of five years from their purchase on July 1 2022. The insole machine will make 10,000 pairs of insoles and then be sold for $800. In September it was used to make 1,600 pairs of insoles. 20% of the office supplies total balance remained on hand at September 30. Accrued the September rent expense of $3,100, it will be paid in October. $31,850 of the unearned revenues remained unearned at September 30. The new X-ray technician did start on Sept 22 as expected and worked every day until the end of the month. The rest of the staff in the clinic worked a total of $3,000 for the month of September. Everyone at this clinic is paid on the same day. (Round to two places). Usain started a project to develop a course for Lakehead University about podiatry. He has been given a contract for $8,600 for this course and he has finished 15% of the work in September. He will be paid when he is finished. Please separate this from his other source(s) of income, but you can group everything he is owed in one account. 3. Calculate the adjusted profit and ending capital balance for the last three months and use them to make a balance sheet for Fleet Foot Podiatry on September 30, 2022. Assume no investments were made by the owner in July or August. (7 marks) 4. Discuss what things increased Usain Bolt's equity during this quarter and what things decreased it. Is this a sustainable pattern? Why or why not? What could be better? (3 marks) 5. Calculate what the profit would have been before any adjusting entries were made using the unadjusted account balances from your worksheet. Compare it to the profit after adjustments were made and discuss the necessity of adjusting entries and their usefulness in preparing financial statements. (3 marks) 6. Calculate the total of all expenses for September after adjustments. Compare it to the total cash dispersed. Was the cash paid equal to total expenses during this period? If there is a difference, use a principle of GAAP to explain why that would be. (3 marks) Fleet Foot Podiatry is a sole proprietorship clinic that is owned by Usain Bolt, who recently retired from running and became a podiatrist in Thunder Bay. They produce quarterly financial statements and the last set they produced was at June 30, 2022. Two months have elapsed and their August 31, 2022 randomly ordered accounts look like: ● ● ● ● Account Accounts Payable Office Supplies Rent Expense Depreciation Expense Capital, Usain Bolt Unearned Revenue. Tools Podiatry Revenue Cash Wages Expense EXHIBIT 4.3 Account Accumulated Depreciation, Tools Office Supplies Expense Teaching revenue Salaries expense Rent expense Communication expense Totals The following are a list of transactions that transpired in September 2022. 1. Prepare the initial journal entries needed by each transaction below in good form. (11 marks) ● Sept 1 Did work for a patient and immediately collected $1,400. Sept 1 Hired a new X-ray technician to start Sept 22 who will be paid $2,100 every 14 days. Sept 2 Paid $1,950 for office supplies purchased on account last month. Sept 2 Purchased office supplies for cash, $2,200. Sept 3 Bought a machine that makes shoe insoles for $34,000 with a note payable. Sept 3 Collected $34,200 as a deposit for work to be done at a foot conference in January. Sept 4 Usain Bolt withdrew $3,250 cash to fly home to Jamaica and see his mom. Cash Supplies Prepaid insurance Equipment Accumulated depreciation, equipment Accounts payable Uneamed food services revenue Notes payable Hailey Walker, capital Hailey Walker, withdrawals Food services revenue Insurance expense Supplies expense Depreciation expense ,equipment Salaries payable Interest expense Interest payable Accounts receivable Totals Sept 7 Performed services for a patient and billed $4,000, but was not paid. Sept 15 Usain Bolt withdrew cash of $1,200 for personal use. Sept 20 Performed services for a patient on credit, billed $3,300 Sept 30 Was paid for the services performed on Sept 7. 2. Using the August 31 account balances above, the September transactions, and the following information, create a worksheet that shows columns for the unadjusted trial balance at Sept 30 2022, and columns for the adjusted trial balance at Sept 30 2022. Provide calculations for each total outside the worksheet for part marks. (7 marks) (in the below format) Dr Debit 8,070 3,600 2,400 6,000 $3,000.00 6,200.00 400.00 12,000.00 Cr 230 23,300 Organico Work Sheet For Month Ended March 31, 2020 Trial Balance 6,400.00 8,000.00 1,500.00 23,300 200 3,000 d) 250 6,000 10,000 Step 3 Prepare Adjusted Trial Balance e) Dr Credit $3,000.00 Adjustments a) 100 1,050 b) c) 200 28,000.00 35 5,650.00 450.00 g) 1,800 3,575 400.00 b) a) e) Cr 1,050 100 c) 200 250 140 3,575 35 Adjusted Trial Balance Dr Cr 8,070 2,550 2,300 6,000 600 1,540 1,000 230 100 1,050 200 35 1,800 25,475 200 200 2,750 6,000 10,000 5,850 300 140 35 25,475 Totals ● . ● ● ● ● 3,575 2010 MCWill Education 3,575 25,475 25,475 The tools have an estimated life of five years from their purchase on July 1 2022. The insole machine will make 10,000 pairs of insoles and then be sold for $800. In September it was used to make 1,600 pairs of insoles. 20% of the office supplies total balance remained on hand at September 30. Accrued the September rent expense of $3,100, it will be paid in October. $31,850 of the unearned revenues remained unearned at September 30. The new X-ray technician did start on Sept 22 as expected and worked every day until the end of the month. The rest of the staff in the clinic worked a total of $3,000 for the month of September. Everyone at this clinic is paid on the same day. (Round to two places). Usain started a project to develop a course for Lakehead University about podiatry. He has been given a contract for $8,600 for this course and he has finished 15% of the work in September. He will be paid when he is finished. Please separate this from his other source(s) of income, but you can group everything he is owed in one account. 3. Calculate the adjusted profit and ending capital balance for the last three months and use them to make a balance sheet for Fleet Foot Podiatry on September 30, 2022. Assume no investments were made by the owner in July or August. (7 marks) 4. Discuss what things increased Usain Bolt's equity during this quarter and what things decreased it. Is this a sustainable pattern? Why or why not? What could be better? (3 marks) 5. Calculate what the profit would have been before any adjusting entries were made using the unadjusted account balances from your worksheet. Compare it to the profit after adjustments were made and discuss the necessity of adjusting entries and their usefulness in preparing financial statements. (3 marks) 6. Calculate the total of all expenses for September after adjustments. Compare it to the total cash dispersed. Was the cash paid equal to total expenses during this period? If there is a difference, use a principle of GAAP to explain why that would be. (3 marks)

Answer rating: 100% (QA)

1 Journal Entries for September 2022 Sept 1 Accounts Receivable Podiatry Revenue 51400 Podiatry Revenue 51400 Sept 1 Salaries Expense 2100 Cash 2100 S... View the full answer