You have been hired as the Accounting Consultant by Zachary McDaniel he has reached out needing help with the financial affairs of his new dentistry business. The following are the transactions that occurred during his first 4 months of being open. He has asked you to help get him caught up and generate financial information for each month.

Zachary McDaniel, DDS opened his practice in September 2017. The following are the transactions made to date.

Sept. 1 McDaniel begins a practice as a dentist and invests $40,000 cash

Sept. 2 Purchases dental equipment on account from Green Jacket Co. for $17,280, 5 year useful life, straight line method Sept. 4 Pays rent for office space, $680 for the month

Sept. 4 Employs a receptionist, Michael Bradley

Sept. 5 Purchases dental supplies for cash $942

Sept. 8 Receives cash of $1,690 from patients for services performed

Sept. 10 Pays miscellaneous office expenses, $430

Sept. 14 Bills patients $5,820 for services performed Sept. 18 Pays Green Jacket Co. on account, $3,600 Sept. 19 Withdraws $3,000 cash from the business for personal use

Sept. 20 Receives $980 from patients on account

Sept. 25 Bills patients $2,110 for services performed

Sept. 30 Pays the following expenses in cash. Salaries and wages $1,800; miscellaneous office expenses $85

Sept. 30 Dental Supplies used during September, $330 Sept. 30 Receives $120 in interest income on deposit accounts Sept. 30 Reserve for Uncollected Receivables of $500

Sept. 30 Prepares Closing Entries for September

Oct. 1 Purchases dental equipment w/ cash from Smiling Teeth for 12,000, 5 year useful life, straight line method

Oct. 2 Pays rent for office space, $680 for the month

Oct. 5 Receives $650 from patients on account

Oct. 5 Purchases dental supplies for cash $743

Oct. 8 Receives cash of $1,225 from patients for services performed

Oct. 10 Pays miscellaneous office expenses, $230

Oct. 12 Bills patients $5,620 for services performed

Oct. 15 Pays Green Jacket Co. on account, $3,500

Oct. 15 Withdraws $4,000 cash from the business for personal use

Oct. 20 Receives $1,080 from patients on account

Oct. 25 Bills patients $4,110 for services performed

Oct. 30 Pays the following expenses in cash. Salaries and wages $1,800; miscellaneous office expenses $125

Oct. 31 Dental Supplies used during September, $425

Oct. 31 Receives $65 interest income on deposit accounts

Oct. 31 Reserve for Uncollectible Accounts of $750.00

Oct. 31 Accounts deemed uncollectible of $75 Oct. 31 Prepares Closing Entries for October

Nov. 1 Maintenance on equipment of $125, paid w/ cash

Nov. 1 Invests in Research & Development with other dentists of $2,500 on account

Nov. 2 Pays rent for office space, $680 for the month

Nov. 5 Receives $2,510 from patients on account

Nov. 5 Purchases dental supplies for cash $325

Nov. 8 Receive cash of $2,225 from patients for services performed

Nov. 10 Pays miscellaneous office expenses, $310

Nov. 12 Bills patients $5,125 for services performed

Nov. 15 Pays Green Jacket Co. remaining balance

Nov. 15 Withdraws $2,500 cash from the business for personal use

Nov. 20 Receives $8,180 from patients on account

Nov. 25 Bills patients $3,875 for services performed

Nov. 30 Pays the following expenses in cash. Salaries and wages $1,800; miscellaneous office expenses $95

Nov. 30 Dental Supplies used during September, $625

Nov. 30 Receives $54 interest income on deposit accounts

Nov. 30 Reserve for Uncollectible Accounts of $1,250

Nov. 30 Accounts deemed uncollectible of $87

Nov. 30 Prepares Closing Entries for Nov Dec. 1 Maintenance on equipment of $55, paid on account

Dec. 1 Invests in Research & Development with other dentists of $1,200 on account

Dec. 1 Pays $1,500 on R&D payable

Dec. 2 Pays rent for office space, $680 for the month

Dec. 5 Receives $3,125 from patients on account

Dec. 5 Purchases dental supplies for cash $525

Dec. 8 Receives cash of $3,575 from patients for services performed

Dec. 10 Pays miscellaneous office expenses, $175

Dec. 12 Bills patients $4,975 for services performed

Dec. 20 Receives $6,757 from patients on account

Dec. 25 Bills patients $4,125 for services performed

Dec. 30 Pays the following expenses in cash. Salaries and wages $1,900; miscellaneous office expenses $45

Dec. 31 Dental Supplies used during September, $415

Dec. 31 Receives $26 interest income on deposit accounts

Dec. 31 Reserve for Uncollectible Accounts of $1,450

Dec. 31 Accounts deemed uncollectible of $186

Dec. 31 Prepares Closing Entries for December

Instructions:

(a) Enter the transactions shown above in appropriate general ledger accounts (i.e., T-Accounts). Use the following ledger accounts: Cash, Accounts Receivable, Allowance for Uncollectible A/R, Supplies, Equipment, Accumulated Depreciation Equipment, Accounts Payable, Owners Capital, Revenue, Interest Income, Salaries/Wages Expense, Rent Expense, Repairs & Maintenance Exp, Research & Development Expense, Office Expenses, Supplies Expense, Depreciation Expense, Bad Debt Expense, and other applicable accounts.

(b) Prepare a trial balance for each month-end cutoff.

(c) Prepare an Income Statement for each month-end, a Statement of Owners Equity for each month-end, and a Balance Sheet for each month-end.