Problem-2

Prepare an income statement, an owner's equity statement, and a balance sheet for the dental practice of Carl Craft, DDS, from the items listed below for the month of September.

Carl Craft, Capital, September 1 $40,000

Accounts payable 7,000

Equipment 30,000

Service revenue 24,000

Carl Craft, Drawings 5,000

Dental supplies expense 3,500

Cash 6,000

Utilities expense 700

Dental supplies 2,800

Salaries expense 7,000

Accounts receivable 14,000

Rent expense 2,000

Problem-1 Presented below is a balance sheet for the Stan Howe Lawn Service at December 31, 2002. STAN HOWE LAWN SERVICE Balance Sheet December 31, 2002 Assets Cash Accounts receivable Supplies Equipment Total assets $12,000 7,000 9,000 11,000 $39,000 Liabilities and Owner's Equity Liabilities Accounts payable Notes payable Owner's equity Stan Howe, Capital Total liabilities & owner's equity $ 8,000 15,000 16,000 $39,000 The following additional data are available for the year which began on January 1: All expenses (excluding supplies expense) total $6,000. Supplies on January 1, were $10,000 and $3,000 of supplies were purchased during the year. Net income for the year was $7,000 and drawings were $5,000. Instructions Determine the following: (Show all computations.) 1. Supplies used during the year. 2. Total expenses for the year. 3. Service revenues for the year. 4. Stan Howe's capital balance on January 1. Problem-2 Prepare an income statement, an owner's equity statement, and a balance sheet for the dental practice of Carl Craft, DDS, from the items listed below for the month of September. Carl Craft, Capital, September 1 Accounts payable Equipment Service revenue Carl Craft, Drawings Dental supplies expense Cash Utilities expense Dental supplies Salaries expense Accounts receivable Rent expense $40,000 7,000 30,000 24,000 5,000 3,500 6,000 700 2,800 7,000 14,000 2,000