Jordan Moore recently graduated from the school of dentistry and has decided that he wants to go into private practice in his home town of Parma, Ohio.

In order to establish the clinic, he contributed $100,000 in cash in exchange for common stock. He also paid an attorney $3,000 to prepare and file the incorporation documents. He also paid a $500 incorporation fee to the State of Ohio. This all happened on August 1^st.

He also paid the following expenses in the month of August.

Salary for a part time dental assistant $4,000

Equipment $50,000

Furniture $10,000

Rent for the next 3 months $3,000

Office supplies $1,000

Salary for Dr. Moore $8,000

Drugs $2,000

During the month of August, he received $20,000 in patient fees.

During the month of September, he received $5,000 in patient fees that related to services that he performed in August.

During the month of September, he paid $2,700 for drugs that he purchased in August.

There was still $250 in office supplies and $300 in drugs remaining at the end of August.

Jordan is very upset. Based on his calculations, he lost $61,500 for the month of August. His friend Sarah, suggested that he talk to your firm to see if he could get some help.

Required:

2. Figure out how Jordan came up with his loss of $61,500.
4. Produce an income statement and balance sheet for the month of August using the accrual method.
6. Present your findings to Jordan.
8. Give Jordan at least 3 constructive suggestions. You can make some reasonable assumptions.
10. Put all of the information above in a report that you can leave with Jordan.
12. Submit an outline of your planned oral presentation, with all the important points of your presentation noted.

Additional information:

2. Jordan has very little financial knowledge at all. He never took an accounting or business class and keeps track of his own personal cash by looking up his balance online.
4. You are meeting Jordan at 4:00 on a Friday afternoon. Jordan is the one that set up this time. He can't imagine that this should take long and he's planning on leaving at 5:00 for a long weekend with his frat buddies. He's been looking forward to this weekend for a long time.

Parma Dental Clinic: Per Jordan

Sales 20,000

Exp.

Attorney 3,000

Fee 500

Dental asst. salary 4,000

Equipment 50,000

Furniture 10,000

Rent 3,000

Office supplies 1,000

Dr. Moore salary 8,000

Drugs 2,000

Total exp. 81,500

Loss -61,500

Answer rating: 100% (QA)

To address Jordans concerns and help him understand his financial situation lets first analyze how he came up with his loss of 61500 for the month of August Contributed Cash for Common Stock Jordan co... View the full answer