3 Assets = Liabilities 4 Owners Equity owner Drawing Revenues Expenses 5 Account S Note Payable Payable Accounts Receivable supplies Equipment Date Cash owner Capital S 6 1 $8,000 $8,000 7 -$2,000 $18,000 $16,000 2 3 8 -$3,000 -$3,000 9 7 10 8 $2,000 $2,000 11 9 $4,000 $4,000 -$2,700 12 10 -$2,700 13 14 $7,300 $7,300 14 18 -$400 $400 -$4,000 15 19 -$4,000 16 20 $3,000 -$3,000 $6,000 17 25 $6,000 18 19 30a -$1,500 -$1,500 20 30b -$200 -$200 21 22 30c -$300 -$300 30d -$500 -$500 23 totals $1,200 $10,300 $1,500 $17,700 $1,600 $16,000 $8,000 $4,000 $17,300 $8,200 24 25 2 3 4 5 6 7 8 9 10 11 September 2021 Economic events for the first month of the business. S21 1 Begins practice as a dentist and invests $8,000 cash in the business bank account. 2 Purchases equipment for cash of $2,000 plus a note payable of $16,000. 3 Pays rent for office space, $3,000 for the month. 7 Hires receptionist to start next week. Wages paid end of month Agreed $500 per week 8 Purchases dental supplies on account for $2,000. The supplies might last a few months. 9 Receives cash of $4,000 from patients for services performed this day. 10 Pays internet and website expense for the month $2,700. 14 Bills patients $7,300 for services performed this week. 18 Pays supplier of dental supplies $400 on account. 19 Withdraws $4,000 cash from the business for personal use. 20 Receives $3,000 from patients on account. 25 Bills patients $6,000 for services performed this week. 30 Pays the following expenses for the month a office wages expense $1.500 b phone expense S 200 30c the furniture and equipment has an estimated useful life of 5 years 30d there are $1,500 of supplies remaining at the end of the month. The first month of note payable is "interest free". After that the payments are $500 per month plus interest. 12 13 14 15 16 17 18 19 20 21 1 S21 2 3 Dentist Office Income Statement For the month ended September 30th, 2021 Revenues service revenue 4 5 6 7 Expenses 8 9 10 11 12 13 14 15 16 17 Profit 18 19 20 21 22 23 Dentist Office Statement of Changes in Owners Equity For the month ended September 30th, 2021 Beginning Capital new investments by owner in the period Profit for the period 24 25 26 27 28 Drawings by the owner 29 30 Ending Capital 31 32 33 20 21 22 23 Dentist Office Statement of Changes in Owners Equity For the month ended September 30th, 2021 Beginning Capital new investments by owner in the period Profit for the period 24 25 26 27 28 Drawings by the owner 29 30 Ending Capital 31 32 33 34 35 Dentist Office Balance Sheet September 30th, 2021 36 37 38 Assets 39 Current Assets 40 41 42 43 44 45 Property Plant and Equipment Equipment Less: Accumulated Depreciation 46 47 48 Total Assets 49 50 Liabilities and Owner's Equity 51 Current Liabilities 39 Current Assets 40 41 42 43 44 45 Property Plant and Equipment Equipment Less: Accumulated Depreciation 46 47 48 Total Assets 49 50 Liabilities and Owner's Equity 51 Current Liabilities 52 53 54 55 Long term Liabilities 56 57 58 total Liabilities 59 60 Owner's Equity 61 62 63 Total Liabilities and Owner's Equity 64