Question

4 S 18 P3-1 (L02,4,5) (Transactions, Financial Statements-Service Company) Listed below are the transactions of Yasunari Rawa- bata, D.D.S., for the month of September Sept. 1 Kawabata begins practice as a dentist and invests $20,000 cash. 2 Purchases dental equipment on account from Green Jacket Co. for $17,280 Pays rent for office space, 5680 for the month. 4 Employs a receptionist, Michael Bradley 5 Purchases dental supplies for cash, $942. Receives cash of $1,690 from patients for services performed. 10 Pays miscellaneous office expenses, $430 14 Bills patients $5,820 for services performed Pays Green Jacket Co. on account, $3,600 19 Withdraws $3,000 cash from the business for personal use. 20 Receives $980 from patients on account 25 Bills patients $2,110 for services performed 30 Pays the following expenses in cash: salaries and wages $1,800; miscellaneous office expenses $85. Dental supplies used during September, $330. Instructions (a) Enter the transactions shown above in appropriate general ledger accounts (use T-accounts). Use the following ledger accounts: Cash, Accounts Receivable, Supplies, Equipment, Accumulated Depreciation-Equipment, Accounts Pay able, Owner's Capital, Service Revenue, Rent Expense, Office Expense, Salaries and Wages Expense, Supplies Expense, Depreciation Expense, and Income Summary. Allow 10 lines for the Cash and Income Summary accounts, and 5 lines for each of the other accounts needed. Record depreciation using a 5-year life on the equipment, the straight-line method, and no salvage value. Do not use a drawing account. (b) Prepare a trial balance. (c) Prepare an income statement, a statement of owner's equity, and an unclassified balance sheet. (d) Close the ledger (e) Prepare a post-closing trial balance. 30

Answer 1

a Equipment 17280 680 Account Receivable 5820 Sep 20 2110 980 Sep 1 Sep 8 Sep 20 Sep 2 Sep 14 Sep-25 942 430 3600 End Bal. Cash 20000 Sep-04 1690 Sep 5 980 Sep 10 Sep 18 Sep 19 Sep 30 Sep 30 12133 17280 End Bal. 6950 3000 Supplies 942 Sep 30 1800 Sep 5 330 85 Sep 19 Owners Capital 3000 Sep 1 End Bal. 20000 17000 End Bal. End Bal. 612 Salaries and wages Expense Sep 30 1800 Supplies Expense 330 Sep 30 Accumulated Depreciation Sep 30 288 End Bal. 1800 End Bal. 330 End Bal. 288 Office Expense 430 Service Revenue Sep 8 Sep 14 Sep-25 End Bal. Sep 10 Sep 30 End Bal. Depreciation Expense 288 1690 5820 2110 9620 Sep 30 85 515 End Bal. 288 Rent expense 680 Account Payable 3600 Sep 2 Sep-04 Sep 18 17280 End Bal. 680 End Bal. 13680

b Credit (S) YASUNARI KAWABATA D.D.S,, Trial Balance September 30 Account Titles Debit (S) Cash 12133 Account Receivable 6950 Equipment 17280 Supplies 612 Owners Capital Account Payable Accumulated Depreciation Service Revenue Salaries and wages Expense 1800 Rent expense 680 Supplies Expense 330 Office Expense 515 Depreciation Expense 288 Total 40588 17000 13680 288 9620 40588

с $ 9620 YASUNARI KAWABATA D.D.S,, Income Statement September 30 Revenue : Service Revenue Expense : Salaries and wages Expense Rent expense Supplies Expense Office Expense Depreciation Expense Total Expense 1800 680 330 515 288 $3613 Net Income $ 6007 с YASUNARI KAWABATA D.D.S,, Statement of Owners Equity September 30 Owners Equity $ 20000 Balance September 01 Add : Net Income Less : Drawing Ending Balance September 30 Retained Total Owners Earning equity $ $ 20000 6007 6007 -3000 $ 6007 $ 23007 -3000 $ 17000

с YASUNARI KAWABATA D.D.S,, Unclassified Balancesheet As of September 30 Assets Amount ($) Amount ($) Current Asset Cash 12133 Account Receivable 6950 Supplies 612 Total Current asset 19695 Property, Plant and Equipments Equipment 17280 Less : accumulated Depreciation -288 16992 Total Assets 36687 Liabilities and Stockholders' Equity Current Liabilities Account Payable 13680 Total Current Liabilities 13680 Stockholders' Equity Owners Capital Total stockholders' equity Total liabilities and stockholders' equity 23007 23007 36687

d Equipment 17280 Account Receivable 5820 Sep 20 2110 980 Sep 1 Sep 8 Sep 20 Sep 2 Sep 14 Sep-25 End Bal. 17280 Cash 20000 Sep-04 1690 Sep 5 980 Sep 10 Sep 18 Sep 19 Sep 30 Sep 30 12133 680 942 430 3600 3000 1800 85 End Bal. 6950 Supplies 942 Sep 30 Sep 5 330 Sep Owners Capital 3000 Sep 1 End Bal. 20000 17000 End Bal. End Bal. 612 Salaries and wages Expense Sep 30 1800 Supplies Expense 330 Sep 30 Accumulated Depreciation Sep 30 288 End Bal. 1800 End Bal. 330 End Bal. 288 1690 Service Revenue Sep 8 Sep 14 Sep-25 End Bal. Office Expense 430 85 515 Sep 10 Sep 30 End Bal. Depreciation Expense 288 5820 2110 9620 Sep 30 End Bal. 288 Rent expense 680 Account Payable 3600 Sep 2 Sep-04 Sep 18 17280 9620 End Bal. 680 End Bal. 13680 Sep-30 Sep-30 Sep-30 Sep-30 Sep-30 Income Summary 1800 Sep-30 680 330 515 288 End Bal. 6007

e Credit (S) YASUNARI KAWABATA D.D.S,, Post closing Trial Balance September 30 Account Titles Debit ($) Cash 12133 Account Receivable 6950 Equipment 16992 Supplies 612 Account Payable Owners Capital Total 36687 13680 23007 36687

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