Joseph DeLapa, DDS, opened his practice on June 1, 2013. He had the following transactions during the 3-month period June 1–August 31. Record the transactions in general journal form. Then, post the journal entries to general ledger T-accounts.
1. Dr. DeLapa invested $20,000 of his own cash in the business.
2. He borrowed $80,000 on June 1 from the Vista Bank to pay for dental equipment and provide working capital.
3. He rented office space, effective June 1, agreeing to a 5-year lease. He paid the landlord $8,000 to cover the 4-month period June 1–September 30.
4. He received an invoice from a contractor for $20,000 for work done in April and May to get the office space in condition to receive patients. (Note: Debit an asset account called Leasehold improvements.)
5. He purchased dental chairs and related equipment, on credit, at a cost of $56,000. The chairs and equipment were delivered and installed on June 1.
6. He purchased dental supplies on credit at a cost of $5,000.
7. During the 3 months ended August 31, Dr. DeLapa performed dental services and billed his patients a total of $96,000. He received cash for the entire amount.
8. He paid his dental hygienist and his receptionist a total of $21,000 for work through August 29.
9. He paid creditors a total of $78,000.