Problem 3-1

Listed below are the transactions of Adam Kawabata, D.D.S., for the month of September.

Sept. 1		Kawabata begins practice as a dentist and invests $21,500 cash.
2		Purchases dental equipment on account from Green Jacket Co. for $18,600.
4		Pays rent for office space, $862 for the month.
4		Employs a receptionist, Michael Bradley.
5		Purchases dental supplies for cash, $1,041.
8		Receives cash of $1,710 from patients for services performed.
10		Pays miscellaneous office expenses, $500.
14		Bills patients $6,410 for services performed.
18		Pays Green Jacket Co. on account, $4,280.
19		Withdraws $3,410 cash from the business for personal use.
20		Receives $1,030 from patients on account.
25		Bills patients $3,490 for services performed.
30		Pays the following expenses in cash: Salaries and wages $2,730; miscellaneous office expenses $95. (Record each separately.)
30		Dental supplies used during September, $430.

Record depreciation using a 5-year life on the equipment, the straight-line method, and no salvage value.

Enter the transactions shown above in appropriate general ledger accounts (use T-accounts). Do not use a drawing account. (Post entries in the order displayed in the problem statement.)

Prepare a trial balance. Prepare an income statement

Prepare a statement of owners equity. (List items that increase owner's equity first.) Prepare an unclassified balance sheet. (List assets in order of liquidity.)

Close the ledger. (Post entries in the order as displayed in the problem statement.) Prepare a post-closing trial balance.