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

Question

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

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

1a. 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.)

1b. Prepare a trial balance.

1c. Prepare an income statement. (Enter loss using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)

1d. Prepare a statement of owner’s equity. (List items that increase owner's equity first.)
1e. Prepare an unclassified balance sheet. (List assets in order of liquidity.)
1f. Close the ledger. (Post entries in the order as displayed in the problem statement.)
1g. Prepare a post-closing trial balance.

Sept. 1 Kawabata begins practice as a dentist and invests $ 23,340 cash. 2 Purchases dental equipment on account from Green Jacket Co. for $ 18,180. 4 Pays rent for office space, $ 798 for the month. 4 Employs a receptionist, Michael Bradley. 5 Purchases dental supplies for cash, $ 1,036. 8 Receives cash of $ 1,740 from patients for services performed. 10 Pays miscellaneous office expenses, $ 520. 14 Bills patients $ 6,760 for services performed. 18 Pays Green Jacket Co. on account, $ 4,690. 19 Withdraws $ 3,550 cash from the business for personal use. 20 Receives $ 999 from patients on account. 25 Bills patients $ 2,530 for services performed. 30 Pays the following expenses in cash: Salaries and wages $ 3,760; miscellaneous office expenses $92. (Record each separately.) 30 Dental supplies used during September, $ 400.

Explanation / Answer

Part 1a and 1f

Cash A/c

Sept. 1

Sept. 8

Sept. 20

To Capital A/c

To Fees A/c

To Patients A/c

23,340

1,740

999

Sept. 4

Sept. 5

Sept. 10

Sept. 18

Sept. 30

Sept. 30

Sept. 30

By Rent A/c

By Dental supplies A/c

By Miscellaneous office expenses

By Green Jacket co

By Salary & Wages

By Miscellaneous office expenses

By Balance c/d

798

1036

520

4,690

3,760

92

15,183

Capital A/c

Sept.19

Sept. 30

To Cash

To Balance c/d

3,550

19,790

Dental Equipment A/c

By Depreciation

(18180÷5 years÷ 12 months)

By Balance c/d

303

17,877

Green Jacket co

Sept.18

Sept.30

To Cash

To Balance c/d

4,690

13,490

Rent A/c

Dental Supplies A/c

By Dental supplies consumption

By Balance C/d

400

636

Fees A/c

Sept.8

Sept.14

Sept.25

By Cash

By Patients

By Patients

1,740

6,760

2,530

Miscellaneous office expenses

Sept.10

Sept.30

To Cash

To Cash

520

92

Patients A/c

Sept.14

Sept.25

To Fees A/c

To Fees A/c

6,760

2,530

Sept.20

Sept.30

By Cash

By Balance c/d

999

8,291

Salary & Wages

Dental Supplies consumption A/c

Part 1b

Trial Balance

Part 1c

Date Particular $ Date Particular $

Sept. 1

Sept. 8

Sept. 20

To Capital A/c

To Fees A/c

To Patients A/c

23,340

1,740

999

Sept. 4

Sept. 5

Sept. 10

Sept. 18

Sept. 30

Sept. 30

Sept. 30

By Rent A/c

By Dental supplies A/c

By Miscellaneous office expenses

By Green Jacket co

By Salary & Wages

By Miscellaneous office expenses

By Balance c/d

798

1036

520

4,690

3,760

92

15,183

26,079 26,079

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