Question
Louis Dixon, a dentist, resigned from his position with a larger dental group in order to begin his own pediatric dental practice. The practice was
Louis Dixon, a dentist, resigned from his position with a larger dental group in order to begin his own pediatric dental practice. The practice was organized as a sole proprietorship, called Louis Dixon Pediatric Dentistry. The business transactions during September while the new venture was being organized are listed below;
Sept.1 Dixon opened a bank account in the name of the business by depositing $50,000 cash, which he had saved over a number of years. 2. Sept. 10 Purchased a small office building located on a large lot for a total price of $182,400, of which $106,000 was applicable to the land and $76,400 to the building. A cash payment of $36,500 was made and a note payable was issued for the balance of the purchase price. 3. Sept. 15 Purchased a microcomputer system from Computer Stores, Inc, for $4,680 cash. 4. Sept. 19 Purchased office furnishings, including dental equipment, from Turnkey Operations, Inc., at a cost of $5,760. A cash down payment of $960 was made, the balance to be paid in three equal installments due September 28, October 28 and November 28. The purchase was on open account and did not require signing of a promissory note. 5. Sept. 26 A $140 monitor in the microcomputer system purchased on September 15 stopped working. The monitor was returned to Computer Stores, Inc., which promised to refund the $140 within five days. 6. Sept. 28 Paid Turnkey Operations, Inc., $1,600 cash as the first installment due on the account payable for office furnishings. 7. Sept. 30 Received $140 cash from Computer Stores, Inc., in full settlement of the account receivable created on September 26.
Prepare journal entries to record the above transactions.
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