Question
Problem 3-1 Listed below are the transactions of Newman Kawabata, D.D.S., for the month of September. Sept. 1 Kawabata begins practice as a dentist and
Problem 3-1
Listed below are the transactions of Newman Kawabata, D.D.S., for the month of September.
Sept. 1 | Kawabata begins practice as a dentist and invests $23,700 cash. | |
2 | Purchases dental equipment on account from Green Jacket Co. for $18,780. | |
4 | Pays rent for office space, $838 for the month. | |
4 | Employs a receptionist, Michael Bradley. | |
5 | Purchases dental supplies for cash, $955. | |
8 | Receives cash of $1,770 from patients for services performed. | |
10 | Pays miscellaneous office expenses, $460. | |
14 | Bills patients $6,590 for services performed. | |
18 | Pays Green Jacket Co. on account, $5,600. | |
19 | Withdraws $3,660 cash from the business for personal use. | |
20 | Receives $1,020 from patients on account. | |
25 | Bills patients $4,020 for services performed. | |
30 | Pays the following expenses in cash: Salaries and wages $3,150; miscellaneous office expenses $93. (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.
a) Enter the transactions shown above in appropriate general ledger accounts (use T-accounts). Use the following ledger accounts: Cash, Accounts Receivable, Supplies, Equipment, Accumulated DepreciationEquipment, Accounts Pay- able, Owners Capital, Service Revenue, Rent Expense, Office Expense, Salaries and Wages Expense, Supplies Expense, Depreciation Expense, and Income Summary. Allow 10 lines for the Cash and Income Summary accounts, and 5 lines for each of the other accounts needed. Record depreciation using a 5-year life on the equipment, the straight-line method, and no salvage value. Do not use a drawing account.
(b) Prepare a trial balance.
(c) Prepare an income statement, a statement of owners equity, and an unclassified balance sheet.
(d) Close the ledger.
(e) Prepare a post-closing trial balance
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