Question

Listed below are transactions of Zachary McDaniel, DDS since opening his practice in September 2018.

Sept. 1	McDaniel begins a practice as a dentist and invests $40,000 cash
Sept. 2	Purchases dental equipment on account from Green Jacket Co. for $17,280, 5 year useful life, straight line method.
Sept. 4	Pays rent for office space, $680 for the month.
Sept. 4	Employs a receptionist, Michael Bradley.
Sept. 5	Purchases dental supplies for cash $942.
Sept. 8	Receive cash of $1,690 from patients for services performed.
Sept. 10	Pays miscellaneous office expenses, $430.
Sept. 14	Bills patients $5,820 for services performed.
Sept. 18	Pays Green Jacket Co. on account, $3,600.
Sept. 19	Withdraws $3,000 cash from the business for personal use.
Sept. 20	Receives $980 from patients on account.
Sept. 25	Bills patients $2,110 for services performed.
Sept. 30	Pays the following expenses in cash. Salaries and wages $1,800; miscellaneous office expenses $85.
Sept. 30	Dental Supplies used during September, $330
Sept. 30	Receives $120 in interest income on deposit accounts.
Sept. 30	Reserve for Uncollected Receivables of $500
Sept. 30	Prepares Closing Entries for Sept.
Oct. 1	Purchases dental equipment w/ cash from Smiling Teeth for 12,000, 5 year useful life, straight line method.
Oct. 2	Pays rent for office space, $680 for the month.
Oct. 5	Receives $650 from patients on account.
Oct. 5	Purchases dental supplies for cash $743.
Oct. 8	Receive cash of $1,225 from patients for services performed.
Oct. 10	Pays miscellaneous office expenses, $230.
Oct. 12	Bills patients $5,620 for services performed.
Oct. 15	Pays Green Jacket Co. on account, $3,500.
Oct. 15	Withdraws $4,000 cash from the business for personal use.
Oct. 20	Receives $1,080 from patients on account.
Oct. 25	Bills patients $4,110 for services performed.
Oct. 30	Pays the following expenses in cash. Salaries and wages $1,800; miscellaneous office expenses $125.
Oct. 31	Dental Supplies used during September, $425
Oct. 31	Receives $65 interest income on deposit accounts.
Oct. 31	Reserve for Uncollectible Accounts of $750.00
Oct. 31	Accounts deemed uncollectible of $75
Oct. 31	Prepares Closing Entries for Oct.
Nov. 1	Maintenance on equipment of $125, paid w/ cash.
Nov. 1	Invests in Research & Development with other dentists of $2,500 on account
Nov. 2	Pays rent for office space, $680 for the month.
Nov. 5	Receives $2,510 from patients on account.
Nov. 5	Purchases dental supplies for cash $325.
Nov. 8	Receive cash of $2,225 from patients for services performed.
Nov. 10	Pays miscellaneous office expenses, $310.
Nov. 12	Bills patients $5,125 for services performed.
Nov. 15	Pays Green Jacket Co. remaining balance.
Nov. 15	Withdraws $2,500 cash from the business for personal use.
Nov. 20	Receives $8,180 from patients on account.
Nov. 25	Bills patients $3,875 for services performed.
Nov. 30	Pays the following expenses in cash. Salaries and wages $1,800; miscellaneous office expenses $95.
Nov. 30	Dental Supplies used during September, $625
Nov. 30	Receives $54 interest income on deposit accounts.
Nov. 30	Reserve for Uncollectible Accounts of $1,250
Nov. 30	Accounts deemed uncollectible of $87
Nov. 30	Prepares Closing Entries for Nov.
Dec. 1	Maintenance on equipment of $55, paid on account.
Dec. 1	Invests in Research & Development with other dentists of $1,200 on account
Dec. 1	Pays $1,500 on R&D payable.
Dec. 2	Pays rent for office space, $680 for the month.
Dec. 5	Receives $3,125 from patients on account.
Dec. 5	Purchases dental supplies for cash $525.
Dec. 8	Receive cash of $3,575 from patients for services performed.
Dec. 10	Pays miscellaneous office expenses, $175.
Dec. 12	Bills patients $4,975 for services performed.
Dec. 20	Receives $6,757 from patients on account.
Dec. 25	Bills patients $4,125 for services performed.
Dec. 30	Pays the following expenses in cash. Salaries and wages $1,900; miscellaneous office expenses $45.
Dec. 31	Dental Supplies used during September, $415
Dec. 31	Receives $26 interest income on deposit accounts.
Dec. 31	Reserve for Uncollectible Accounts of $1,450
Dec. 31	Accounts deemed uncollectible of $186
Dec. 31	Prepares Closing Entries for Dec.

Instructions:

1. Enter the transactions shown above in appropriate general ledger accounts (i.e. T-Accounts). Use the following ledger accounts: Cash, Accounts Receivable, Allowance for Uncollectible A/R, Supplies, Equipment, Accumulated Depreciation – Equipment, Accounts Payable, Owner’s Capital, Revenue, Interest Income, Salaries/Wages Expense, Rent Expense, Repairs & Maintenance Exp, Research & Development Expense, Office Expenses, Supplies Expense, Depreciation Expense, Bad Debt Expense, and other applicable accounts.
2. Prepare a trial balance for each month-end cutoff.

Answer 1

Solution.

Account: Cash
			P.			Balance
Date		Items	Ref.	Debit	Credit	Debit	Credit
Sept.	1	Owner's Cap		40000		40000
	4	Rent Expense			680		39320
	5	Supplies			942		38378
	8	Revenue		1690			40068
	10	Mis. Expense			430		39638
	18	AP			3600		36038
	19	Withdrawal			3000		33038
	20	AR		980			34018
	30	Salary & Wage			1800		32218
		Mis. Expense			85		32133
	30	Int. Income		120			32253

Account: Equipment
Sept.	2	Acc. Payable		17280		17280

Account: Supplies
Sept.	5	Cash		942		942
	30	Supplies Exp			330	612

Account: Account Receivable
Sept.	14	Revenue		5820		5820
	20	Cash			980	4840
	25	Revenue		2110		6950
	30	Allow. Uncol.			500	6450

Account: Owner's Withdrawal
Sept.	19	Cash		3000		3000

Account: Owner's Capital
			Post			Balance
Date		Items	Ref.	Debit	Credit	Debit	Credit
Sept.	1	Cash			40000		40000

Account: Account Payable
Sept.	2	Equipment			17280		17280
	18	Cash		3600			13680

Account: Revenue
Sept.	8	Cash			1690		1690
	14	AR			5820		7510
	25	AR			2110		9620

Account: Interest Income
Sept.	30	Cash			120		120

Account: Allowance for Uncollectible AR
Sept.	30	AR		500		500

Account: Rent Expense
Sept.	4	Cash		680		680

Account: Mis. Expense
Sept.	10	Cash		430		430
	30	Cash		85		515

Account: Salaries and Wage Exp
Sept.	30	Cash		1800		1800

Account: Supplies Exp
Sept.	30	Supplies		330		330

Closing Entries
Date		Description		Debit	Credit
Sept.	30	Revenue		9620
		Int. Income		120
		Rent Expense			680
		Mis. Expense			515
		Salary & Wage Exp			1800
		Supplies Exp			330
		Retained Earnings			6415

Trial Balance
For the Month Ended Sept. 30, 2018
Account Tittle	Debit	Credit
Cash	32253
Equipment	17280
Supplies	612
Account Receivable	6450
Allowance for Uncoll. AR	500
Owner's Capital		40000
Owner's Withdrawal	3000
Account Payable		13680
Retained Earnings		6415
Total	60095	60095

Only 1 month Transactions could be recorded, due to letters limitation to 65000 count.