Question

4 Page 1 of 1 14 18 P3.1 (L02,4,5) (Transactions, Financial Statements--Service Company) Listed below are the transactions of Yasunari Kawa- 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, $680 for the month. 4 Employs a receptionist, Michael Bradley. 5 Purchases dental supplies for cash, $942. 8 Receives cash of $1,690 from patients for services performed. 10 Pays miscellaneous office expenses, $430. 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. 30 Dental supplies used during September, $330. Instructions to prepare the Journal entries for above transactions. 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. U Prepare a trial balance. Prepare an income statement, a statement of owner's equity, and an unclassified balance sheet. Close the ledger. Prepare a post-closing trial balance. 四年8

Answer 1

Journal Entries Date Account Title and Explaination Post. Ref. Debit $ Credit $ Sep. 1 $ 20,000.00 Cash Owner's Capital (To record cash invested into business) $ 20,000.00 Sep. 2 $ 17,280.00 Equipment Accounts Payable (To record Equipment purchased on account) $ 17,280.00 Sep.4 $ 680.00 Rent Expense Cash (To record Rent Expense paid) $ 680.00 Sep.4 No Journal Entry Required $ 942.00 Sep.5 Supplies Cash (To record supplies purchased for cash) 07 942.00

Sep.8 $ 1,690.00 Cash Service Revenue (To record Services performed for cash) CA 1,690.00 $ 430.00 Sep.10 Office Expenses Cash (To record Office Expenses paid) $ 430.00 $ 5,820.00 Sep. 14 Accounts Receivable Service Revenue (To record Service performed on account) $ 5,820.00 $ 3,600.00 Sep.18 Accounts Payable Cash (To record payment of payables) $ 3,600.00 $ 3,000.00 Sep.19 Owner's Drawings Cash (To record Cash withdrawn for personal use) $ 3,000.00 $ 980.00 Sep.20 Cash Accounts Receivable (To record collection of receivables) $ 980.00

$ 2,110.00 Sep.25 Accounts Receivable Service Revenue (To record Services performed on account) $ 2,110.00 $ $ 1,800.00 85.00 Sep.30 Salaries and Wages Expense Office Expenses Cash (To record payment salaries and wages expenses and Office expenses) $ 1,885.00 $ 330.00 Sep.30 Supplies Expense Supplies (To record dental supplies used) $ 330.00