Question

B ES Listed below are the transactions of George Robinson, D.D.S., for the month of September. EEEEEEEEE R R TERRRRRRR OLLER WARAN NURSER BRRRR RE ULES N Sept. 1 Robinson begins practice as a dentist, invests $19,140 cash and issues 1,914 shares of $10 par stock. 2 Purchases dental equipment on account from Green Jacket Co. for $18,240. 4 Pays rent for office space, 5700 for the month. 4 Employs a receptionist, Michael Bradley. 5 Purchases dental supplies for cash, $920. 8 Receives cash of $1,700 from patients for services performed. 10 Pays miscellaneous office expenses, $420. 14 Bills patients $5,440 for services performed. 18 Pays Green Jacket Co, on account, $3,550. 19 Pays a dividend of $3,090 cash.. 20 Receives $940 from patients on account. 25 Bills patients $1,970 for services pertörmed." 30 Pays the following expenses in cash: Salaries and wages 51,960; miscellaneous office expenses $88. 30 Dental supplies used during September, 5310. sh GERALD ROLLA 25 ARNAR AANUAR Min PRASARAN BAR RELATERRA RA TENGE ere SU ALL w RECE Record depreciation using a 5-year life on the equipment, the straight-line method, and no salvage value.

Answer 1

The entries posted to respective accounts are correct. Posted the closing balance to trial balance -

George Robinson, D.D.D Trial Balance Particulars Cash Accounts Receivable Supplies Equipment Common Stock Accounts Payable Rent Office Expense Salaries and Wages Expense Supplies Expense Depreciation Expense Service Revenue Dividend Accumulated Depreciation Equipment Debit Credit 11042 6470 610 18240 19140 14680 700 508 1960 310 304 91101 3090 304 43234 43234

Another alternative to posting income and expense is posting retained earnings balance, shown below-

George Robinson, D.D.D Trial Balance Particulars Cash Accounts Receivable Supplies Equipment Accumulated Depreciation- Equipment Common Stock Accounts Payable Retained Earnings Debit Credit 11042 6470 610 18240 -304, 19140 14680 2238 36058 36058

Income statement and retained earnings shown below-

700 George Robinson, D.D.D Income Statement Service Revenue (a) Expense Rent Office Expense Salaries and Wages Expense Supplies Expense Depreciation Expense Total Expense (b) Net Income (a-b) 508 1960 310 304 3782 5328 George Robinson, D.D.D Statement of retained earnings Net Income Less: Dividend Paid Retained Earnings Balance 5328 3090 2238

Balance Sheet

11042 George Robinson, D.D.D Balance Sheet Asset Cash Accounts Receivable Supplies Equipment less accumulated depreciatio Total Assets Liabilities and Owner's Equity Accounts Payable Shareholder's Equity Common Stock Retained Earnings Total Liabilities and Shareholder's Equity 6470 610 17936 36058 14680 19140 2238 36058