Question

Listed below are the transactions of Adam Kawabata, D.D.S., for the month of September.

Sept. 1		Kawabata begins practice as a dentist and invests $24,450 cash.
2		Purchases dental equipment on account from Green Jacket Co. for $18,900.
4		Pays rent for office space, $770 for the month.
4		Employs a receptionist, Michael Bradley.
5		Purchases dental supplies for cash, $1,035.
8		Receives cash of $1,760 from patients for services performed.
10		Pays miscellaneous office expenses, $520.
14		Bills patients $7,640 for services performed.
18		Pays Green Jacket Co. on account, $5,260.
19		Withdraws $3,480 cash from the business for personal use.
20		Receives $1,010 from patients on account.
25		Bills patients $3,300 for services performed.
30		Pays the following expenses in cash: Salaries and wages $3,500; miscellaneous office expenses $92. (Record each separately.)
30		Dental supplies used during September, $370.

Record depreciation using a 5-year life on the equipment, the straight-line method, and no salvage value.

Enter the transactions shown above in appropriate general ledger accounts (use T-accounts). Do not use a drawing account. entries in the order displayed in the problem statement.) Cash Sept. 1 244501 | Sept. 4 770 Sept. 8 T 1760 ||| Sept. 5 - 1 1035 Sept. 20 101 | Sept. 10 | T 520 Sept. 18 1 5260 Sept. 19 T 3480 | Sept. 30 1 3500 || Sept. 301 1 Sept. 30 Bal. 12563 Accounts Receivable Sept. 14 640 Sept. 20 1010 Sept. 25 l 330 Sept. 30 Bal.

Answer 1

Adam Kawabata, D.D.S. Journal Enteries Date Particulars Sep-01 Cash a/c To Owner's Capital (Capital invested) Dr. Debit in $ Credit in $ 24450 24450 18900 Sep-02 Dental Equipment a/c Dr. To Accounts Payable (Equipment on account) 18900 Dr. 770 Sep-04 Rent expense a/c To Cash (Rent expense paid) 770 Sep-04 No Journal entry Dr. 1035 Sep-05 Dental Supplies a/c To Cash (Supplies purchased) 1035 Dr. 1760 Sep-08 Cash a/c To Service Revenue (Services performed for cash) 1760 Sep-10 Miscellaneous expense a/c Dr. To Cash (Miscellaneous expense paid) 520

Date Particulars Sep-14 Accounts Receivable a/c Dr. To Service Revenue (Services provided on account) Debit in $ Credit in $ 7640 7640 Dr. Dr. 5260 Sep-18 Accounts Payable a/c To Cash (Creditors paid) 5260 Dr. 3480 Sep-19 Withdrawals a/c To Cash (Dividend paid) 3480 Dr. 1010 Sep-20 Cash a/c To Accounts Receivable (Cash received from debtors) 1010 3300 Sep-25 Accounts Receivable a/c Dr. To Service Revenue (Services provided on account) 3300 3500 92 Sep-30 Salaries and wages expense a/c Dr. Miscellaneous expense a/c Dr. To Cash (Expenses paid) 3592 Dr. 370 Sep-30 Supplies Expense a/c To Dental Supplies (Supplies expensed) 370 315 Sep-30 Depreciation Expense a/c Dr. To Accum Depre - Equip (To record depreciation)(18900)/( 5x12) 315

Closing Enteries Date Particulars Debit in $ Credit in $ Sep-30 Income Summary a/c Dr. 5567 To Rent Expense 770 To Salaries and wages expense 3500 To Miscellaneous expense 612 To Supplies Expense 370 To Depreciation Expense 315 (To close expense account) Dr. 12700 Sep-30 Service Revenue a/c To Income Summary (Revenue accounts closed) 12700 Sep-30 Income Summary a/c Dr. To Retained Earnings (Profits transferred to retained earnings) 7133 Dr. 3480 Sep-30 Retained Earnings a/c To Dividends (To record dividends) 3480

Trial Balance For the Month ending Sept 30 Particulars Cash Accounts Receivable Dental Supplies Dental Equipment Accum Depre - Equip Accounts Payable Owner's Capital Withdrawals Service Revenue Rent expense Miscellaneous expense Salaries and wages expense Supplies Expense Depreciation Expense Totals Post Closing Debit in $ Credit in $ Debit in $ Credit in $ 12563 12563 9930 9930 665 665 18900 18900 315 315 13640 13640 24450 28103 3480 12700 770 612 3500 370 315 51105 51105 42058 42058 12700 Statement of Income For the Month ending Sept 30 Service Revenue Less: Rent expense Miscellaneous expense Salaries and wages expense Supplies Expense Depreciation Expense Net Income 770 612 3500 370 315 5567 7133 Statement of Owners Equity For the Month ending Sept 30 Owner's Capital Net Income Dividend 24450 7133 -3480 28103

Amounts in $ Amounts in $ Balance sheet As at Sept 30 Assets Current Assets Cash Accounts Receivable Dental Supplies Amounts in $ Amounts in $ Liabilities Current Liabilities 12563 Accounts Payable 9930 665 23158 13640 Non Current Assets Dental Equipment Accum Depre - Equip Total Assets 18900 -315 Shareholders Equity Owner's Equity 18585 Owner's Capital 41743 Total Liabilities & Equity 28103 28103 41743

Common Stock Service Revenue Accounts Receivable Cash Cash Miscellaneous expense 520 92 Income Summary 612 612 612 Cash 24450 Rent expense 1760 Dental Supplies 1010 Miscellaneous expense Accounts Payable Dividend Salaries and wages expense Miscellaneous expense Bal 770 1035 520 5260 3480 3500 Cash Salaries and wages expense 3500 Income Summary 3500 92 3500 3500 12563 27220 27220 Supplies Expense Dental Supplies 370 Accounts Receivable 7640 Cash 3300 1010 Service Revenue Service Revenue Income Summary 370 370 370 Bal 9930 10940 10940 Accum Depre - Equip Depreciation Expense 315 Income Summary 315 315 315 Cash Dental Supplies 1035 Supplies Expense Bal 1035 370 665 1035

Accounts Payable Dental Equipment 18900 Bal 18900 18900 18900 315 Accum Depre - Equip Depreciation Expense 315 315 Bal 315 Cash 18900 Accounts Payable 5260 Dental Equipment 13640 18900 Bal 18900 Withdrawals Bal Owner's Capital 3480 Cash 28103 Income Summary 31583 24450 7133 31583 Cash Withdrawals 3480 Owner's Capital 3480 3480 3480 Service Revenue Cash Accounts Receivable 12700 Accounts Receivable 12700 1760 7640 3300 12700 Income Summary Cash Rent expense 770 Income Summary 770 770 770