Question

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 $6,930 for services performed.

18 Pays Green Jacket Co. on account, $3,730.

19 Withdraws $3,480 cash from the business for personal use.

20 Receives $1,050 from patients on account.

25 Bills patients $3,520 for services performed.

30 Pays the following expenses in cash: Salaries and wages $3,280; miscellaneous office expenses $86. (Record each separately.)

30 Dental supplies used during September, $360. Record depreciation using a 5-year life on the equipment, the straight-line method, and no salvage value.

question:

a.Enter the transactions shown above in appropriate general ledger accounts (use T-accounts). Do not use a drawing account.

b.Prepare a trial balance.

c.Prepare an income statement.

d.Prepare a statement of owner’s equity.

e.Prepare an unclassified balance sheet.

f.Close the ledger

g.Prepare a post-closing trial balance.

Answer 1

T-Accounts
Cash					Accounts receivable
Sep-01	21960	Sep-04	882		Sep-14	6,930	Sep-20	1050
Sep-08	1700	Sep-05	991		Sep-25	3520
Sep-20	1050	Sep-10	440		balance	9400
		Sep-18	3730
		Sep-19	3480		Supplies
		Sep-30	3280		Sep-05	991	Sep-30	360
		Sep-30	86		balance	631
balance	11821
Equipment					Accumulated depreciation-Equipment
Sep-02	17340						Sep-30	3468
Accounts payable					Owners Capital
Sep-18	3730	Sep-02	17340		Sep-19	3,480	Sep-01	21,960
		balance	13610				balance	18480
Service revenue					Rent expense
		Sep-08	1700		Sep-04	882
		Sep-14	6,930
		Sep-25	3,520		office expense
		balance	12150		Sep-10	440
					Sep-30	86
Salaries & wages expense					balance	526
set 30	3280
balance	3280				supplies expense
					Sep-30	360
Depreciation expese					balance	360
Sep-30	3468
Trail balance					income statement
		debit	Credit		Service revenue			12150
Cash		11821			Expenses
account receivable		9400			Rent expense		882
supplies		631			office expense		526
Equipment		17340			Salaries & wages exp		3280
Accumulated depr			3468		supplies expens e		360
Accounts payable			13610		depreciation expense		3468
Owners capital			18480		total expense			8516
Service revenue			12150		Net income			3994
Rent expense		882
office expense		526			Statement of owners Equity
Salaries & wages exp		3280			cash invested			21960
supplies expens e		360			Add net income			3994
depreciation expense		3468			less withdrawals			-3480
total		47708	47708		balance at end			22474
balance sheet
Cash		11821			accounts payable		13610
Account receivable		9400
Supplies		631			total liabiltiies			13610
total current assets			21852
					Stockholders Equity			22114
PP&E
Equipment		17340
accumuated dep		3468	13872
total assets			35724		total liabilties & equity			35724
income summary					service revenue
Sep-30	12150	Sep-30	882		Sep-30	12150	balance	12150
		Sep-30	526
		Sep-30	3280		rent expense
		Sep-30	360		balan	882	Sep-30	882
		Sep-30	3468
		Sep-30	3634		office expense
					balance	526	Sep-30	526
salaries & wages expense					supplies expense
balance	3280	Sep-30	3280		balance	360	Sep-30	360
Depreciatione xpense
balance	3468	Sep-30	3468
Closing trial balance
Cash		11821
account receivable		9400
supplies		631
Equipment		17340
Accumulated depr			3468
Accounts payable			13610
Owners capital			22114
total		39192	39192