P3-1 (L02,4,5) (Transactions, Financial Statements—Service Company) Listed below

Question

P3-1 (L02,4,5) (Transactions, Financial Statements—Service Company) Listed below are the transactions of Yasunari Kawa-bata, D.D.S., for the month of September.

Sept. 1 Kawabata begins practice as a dentist and invests $20,000 cash.
2. Purchases dental equipment on account from Green Jacket Co. for $17,280. 4 Pays rent for office space, $680 for the month.
4. Employs a receptionist, Michael Bradley.
5. Purchases dental supplies for cash, $942.
8. Receives cash of $1,690 from patients for services performed.
10. Pays miscellaneous office expenses, $430.
14. Bills patients $5,820 for services performed.
18. Pays Green Jacket Co. on account, $3,600.
19. Withdraws $3,000 cash from the business for personal use.
20. Receives $980 from patients on account.
25. Bills patients $2,110 for services performed.
30. Pays the following expenses in cash: salaries and wages $1,800; miscellaneous office expenses $85.
30. Dental supplies used during September, $330.

Record the transactions in General Journal format only, ***** Use the Drawings account.

Determine the balances in each of the accounts as of September 30.

Explanation / Answer

Solution:

Journal Entries - Yasunari Kawa-bata Date Particulars Debit Credit 1-Sep Cash Dr $20,000.00      To Kawabata capital $20,000.00 (To record capital invested in business) 2-Sep Dental Equipment Dr $17,280.00      To accounts payable $17,280.00 (To record puchase of equipment) 4-Sep Office rent Dr $680.00      To Cash $680.00 (To record payment of office rent) 4-Sep No Entry 5-Sep Dental Supplies Dr $942.00      To Cash $942.00 (To record purchase of dental supplies) 8-Sep Cash Dr $1,690.00      To Service revenue $1,690.00 (To record service performed) 10-Sep Office expenses Dr $430.00      To Cash $430.00 (To record office expenses) 14-Sep Accounts receivables Dr $5,820.00      To Service revenue $5,820.00 (To record service performed) 18-Sep Accounts payable Dr $3,600.00      To Cash $3,600.00 (To record payment to vendor) 19-Sep Drawings Dr $3,000.00      To Cash $3,000.00 (To record withdrawl of funds for personal use) 20-Sep Cash Dr $980.00        To Accounts receivables $980.00 25-Sep Accounts receivables Dr $2,110.00      To Service revenue $2,110.00 (To record service performed) 30-Sep Salaries and wages Dr $1,800.00 Misellenous office expenses $85.00      To Cash $1,885.00 (To record payment of expenses) 30-Sep Supplies Expenses Dr $330.00      To Supplies $330.00 (To record supply used)

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