Problem 3-01 (Part Level Submission)
Listed below are the transactions of David Davis, D.D.S., for the month of September.
Sept. 1 | Davis begins practice as a dentist, invests $21,900 cash and issues 2,190 shares of $10 par stock. | |
2 | Purchases dental equipment on account from Green Jacket Co. for $17,640. | |
4 | Pays rent for office space, $670 for the month. | |
4 | Employs a receptionist, Michael Bradley. | |
5 | Purchases dental supplies for cash, $910. | |
8 | Receives cash of $1,570 from patients for services performed. | |
10 | Pays miscellaneous office expenses, $460. | |
14 | Bills patients $6,330 for services performed. | |
18 | Pays Green Jacket Co. on account, $3,930. | |
19 | Pays a dividend of $3,250 cash. | |
20 | Receives $1,030 from patients on account. | |
25 | Bills patients $1,980 for services performed. | |
30 | Pays the following expenses in cash: Salaries and wages $1,730; miscellaneous office expenses $84. | |
30 | Dental supplies used during September, $300. |
Record depreciation using a 5-year life on the equipment, the
straight-line method, and no salvage value.
Prepare t-accounts, trial balance, multiple-step income statement for the year, retained earnings statement for the year, balance sheet, Journalize the closing entries, and post-closing trial balance.
Working as follows:
Date | Account Titles | Debit | Credit |
Sept. | |||
1 | Cash | $21,900 | |
Common stock | $21,900 | ||
2 | Dental Equipment | $17,640 | |
Accounts payable | $17,640 | ||
4 | Rent expense | $670 | |
Cash | $670 | ||
4 | No entry | ||
5 | Supplies | $910 | |
Cash | $910 | ||
8 | Cash | $1,570 | |
Fees revenue | $1,570 | ||
10 | Misc office expense | $460 | |
Cash | $460 | ||
14 | Accounts receivable | $6,330 | |
Fees revenue | $6,330 | ||
18 | Accounts payable | $3,930 | |
Cash | $3,930 | ||
19 | Dividends | $3,250 | |
Cash | $3,250 | ||
20 | Cash | $1,030 | |
Accounts receivable | $1,030 | ||
25 | Accounts receivable | $1,980 | |
Fees revenue | $1,980 | ||
30 | Salaries and wages expense | $1,730 | |
Misc office expense | $84 | ||
Cash | $1,814 | ||
30 | supplies expense | $300 | |
supplies | $300 | ||
30 | Depreciation expense | $3,528 | |
Accumulated depreciation ($17640/5years) | $3,528 |
__________________________________________________________________
Prepare T-accounts as follows:
Cash | |||
1 | $21,900 | 2 | $670 |
8 | $1,570 | 5 | $910 |
20 | $1,030 | 10 | $460 |
18 | $3,930 | ||
19 | $3,250 | ||
30 | $1,814 | ||
End. Bal. | $13,466 | ||
Common Stock | |||
1 | $21,900 | ||
End. Bal. | $21,900 | ||
Dental Equipment | |||
2 | $17,640 | ||
End. Bal. | $17,640 | ||
Accounts payable | |||
18 | $3,930 | 2 | $17,640 |
End. Bal. | $13,710 | ||
Rent expense | |||
4 | $670 | ||
End. Bal. | $670 | ||
Supplies | |||
5 | $910 | 30 | $300 |
End. Bal. | $610 | ||
Supplies expense | |||
30 | $300 | ||
End. Bal. | $300 | ||
Fees revenue | |||
8 | $1,570 | ||
14 | $6,330 | ||
25 | $1,980 | ||
End. Bal. | $9,880 | ||
Accounts receivable | |||
14 | $6,330 | 20 | $1,030 |
25 | $1,980 | ||
End. Bal. | $7,280 | ||
Misc. Office expense | |||
10 | $460 | ||
30 | $84 | ||
End. Bal. | $544 | ||
Salaries and wage expense | |||
30 | $1,730 | ||
End. Bal. | $1,730 | ||
Dividends | |||
30 | $3,250 | ||
End. Bal. | $3,250 | ||
Depreciation expense | |||
30 | $3,528 | ||
End. Bal. | $3,528 | ||
Accumulated Depreciation | |||
30 | $3,528 | ||
End. Bal. |
___________________________________________________________________
Prepare Income statement as follows:
Income statement | ||
Revenue: | ||
Fees revenue | $9,880 | |
Less: operating expenses: | ||
Salaries and wages expense | $1,730 | |
Rent expense | $670 | |
Misc. office expense | $544 | |
Supplies expense | $300 | |
Depreciation expense | $3,528 | $6,772 |
Net Income | $3,108 |
_____________________________________________________
Prepare Statement of retained earnings as follows:
Statement of retained earnings | |
Beg. Bal. | - |
Add: Net Income | $3,108 |
Less: Dividends | ($3,250) |
End. Bal. | ($142) |
_________________________________________________________
Prepare Balance sheet as follows:
Balance Sheet | |
Cash | $13,466 |
Accounts recivable | $7,280 |
Supplies | $610 |
Dental Equipment ($17640-$3528) | $14,112 |
Total Assets | $35,468 |
Liabilities | |
Accounts payable | $13,710 |
Stockholders' equity | |
Common stock | $21,900 |
retained earnings | ($142) |
Total Liabilities & SE | $35,468 |
Problem 3-01 (Part Level Submission) Listed below are the transactions of David Davis, D.D.S., for the...
Problem 3-01 (Part Level Submission) Listed below are the transactions of David Davis, D.D.S., for the month of September. Sept. 1 Davis begins practice as a dentist, invests $21,900 cash and issues 2,190 shares of $10 par stock. 2 Purchases dental equipment on account from Green Jacket Co. for $17,640. 4 Pays rent for office space, $670 for the month. 4 Employs a receptionist, Michael Bradley. 5 Purchases dental supplies for cash, $910. 8 Receives cash of $1,570 from patients for...
Problem 3-01 Listed below are the transactions of David Davis, D.D.S., for the month of September. Sept. 1 Davis begins practice as a dentist, invests $21,900 cash and issues 2,190 shares of $10 par stock. 2 Purchases dental equipment on account from Green Jacket Co. for $17,640. 4 Pays rent for office space, $670 for the month. 4 Employs a receptionist, Michael Bradley. 5 Purchases dental supplies for cash, $910. 8 Receives cash of $1,570 from patients for services performed....
Problem 3-01 (Part Level Submission) Listed below are the transactions of Gary King, D.D.S., for the month of September. Sept. 1 King begins practice as a dentist, invests $20,600 cash and issues 2,060 shares of $10 par stock. 2 Purchases dental equipment on account from Green Jacket Co. for $18,780. 4 Pays rent for office space, $640 for the month. 4 Employs a receptionist, Michael Bradley. 5 Purchases dental supplies for cash, $940. 8 Receives cash of $1,860 from patients...
Listed below are the transactions of Alan Kawabata, D.D.S., for the month of September. Sept. 1 Kawabata begins practice as a dentist and invests $21,960 cash. 2 Purchases dental equipment on account from Green Jacket Co. for $17,340. 4 Pays rent for office space, $882 for the month. 4 Employs a receptionist, Michael Bradley. 5 Purchases dental supplies for cash, $991 8 Receives cash of $1,700 from patients for services performed. 10 Pays miscellaneous office expenses, $440. 14 Bills patients...
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Listed below are the transactions of Yasunari Kawabata, D.D.S., for the month of September. Sept. 1 Kawabata begins practice as a dentist and invests $20,000 cash. 1 Purchases a one-year insurance policy for $1,200, paying the entire amount in cash. 2 Purchases dental equipment on account from Green Jacket Co. for $17,280. 2 Collects $3,000 prepayment from patient for 2 year orthodontic treatment plan. 4 Pays rent for office space, $680 for the month. 4 Employs a receptionist, Michael Bradley....
Listed below are the transactions of William Brown, D.D.S., for the month of September Sept. 1 Brown begins practice as a dentist, invests $20,160 cash and issues 2,016 shares of $10 par stock. 2 Purchases dental equipment on account from Green Jacket Co. for $17,580. 4 Pays rent for office space, $650 for the month. 4 Employs a receptionist, Michael Bradley. 5 Purchases dental supplies for cash, $870. 8 Receives cash of $1,540 from patients for services performed. 10 Pays...
Listed below are the transactions of James Smith, D.D.S., for the month of September. Sept. 1 Smith begins practice as a dentist, invests $20,620 cash and issues 2,062 shares of $10 par stock. 2 Purchases dental equipment on account from Green Jacket Co. for $17,340. 4 Pays rent for office space, $740 for the month. 4 Employs a receptionist, Michael Bradley. 5 Purchases dental supplies for cash, $890. 8 Receives cash of $1,740 from patients for services performed. 10 Pays miscellaneous...
Problem 3-01 (Part Level Submission) Listed below are the transactions of Gary King, D.D.S., for the month of September. Sept. 1 King begins practice as a dentist, invests $20,600 cash and issues 2,060 shares of $10 par stock. 2 Purchases dental equipment on account from Green Jacket Co. for $18,780. 4 Pays rent for office space, $640 for the month. 4 Employs a receptionist, Michael Bradley. 5 Purchases dental supplies for cash, $940. 8 Receives cash of $1,860 from patients...
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