138 Chapter 3 The Accounting Information System PROBLEMS P3-1 402,4,5) (Transact

Question

138 Chapter 3 The Accounting Information System PROBLEMS P3-1 402,4,5) (Transactions, Financial Statements-Service Company) Listed below are the transactions of Yasunari Kawa- bata, D.DS, for the month of September Sept. 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 S1,690 from patients for services performed. 10 Pays miscellaneous office expenses, $430. 14 Bills patients $5820 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 9980 from patients on account 25 Bills patients $2,110 for services performed 30 Pays the following expenses in cash salaries and wages $1,80; miscellaneous office expenses $85 30 Dental supplies used during September, s33x0 1 Instructions (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 Depreciation-Equipment, Accounts Pay able, Owner's 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 owner's equity, and an unclassified balance sheet. (d) Close the ledger. (e) Prepare a post-closing trial balance

Explanation / Answer

a & d Cash Service Revenue Sept.1 $20,000.00 Sept.4 $680.00 Sept. 30 $9,620.00 Sept. 8 $1,690.00 Sept.8 $1,690.00 Sept.5 $942.00 Sept.14 $5,820.00 Sept.3 $980.00 Sept.10 $430.00 Sept.25 $2,110.00 Sept.18 $3,600.00 $9,620.00 $9,620.00 Sept.19 $3,000.00 Sept.30 $1,800.00 Depreciation Expense Sept.30 $85.00 Sep. 30 288 Sep. 30 288 30.Bal. $12,133.00 Income Summary Furniture and Equipment Sept. 30 680 Sept. 30 $9,620.00 Sept.2 $17,280.00 Sept. 30 515 Sept. 30 1800 Yasunari Kawabata, Capital Sept. 30 330 Sept.19 $3,000.00 Sept.1 $20,000.00 Sept. 30 288 Sept.30 $6,007.00 Sept. 30 Income $6,007.00 Bal.30 $23,007.00 Accounts Receivable Sept.14 $5,820.00 Sept. 20 $980.00 Sept.25 $2,110.00 Bal.30 $6,950.00 Accounts Payable Sep. 18 $3,600.00 Sep. 2 $17,280.00 Bal.30 $13,680.00 Supplies on Hand Sep. 5 $942.00 Sep. 30 $330.00 Bal. 30 $612.00 Miscellaneous Office Expense Sep. 10 $430.00 Sep. 30 $515.00 Sep.30 $85.00 $515.00 $515.00 Office Salaries Expense Sep. 30 $1,800.00 Sep. 30 $1,800.00 Supplies Expense Sep. 30 $330.00 Sep. 30 $330.00 b) YASUNARI KAWABATA, D.D.S. Trial Balance September 30 Cash $12,133.00 Accounts Receivable $6,950.00 Supplies on Hand $612.00 Furniture and Equipment $17,280.00 Accumulated Depreciation $288.00 Accounts Payable $13,680.00 Yasunari Kawabata, Capital $17,000.00 Service Revenue $9,620.00 Rent Expense $680.00 Miscellaneous Office Expense $515.00 Office Salaries Expense $1,800.00 Supplies Expense $330.00 Depreciation Expense $288.00 Totals $40,588.00 $40,588.00 c) YASUNARI KAWABATA, D.D.S. Income Statement For the Month of September Revenues: Service Revenue $9,620.00 Expenses Rent Expense $680.00 Miscellaneous Office Expense $515.00 Office Salaries Expense $1,800.00 Supplies Expense $330.00 Depreciation Expense $288.00 Total Expenses $3,613.00 Net Income $6,007.00 c) YASUNARI KAWABATA, D.D.S. Statement of Owner's Equity For the Month of September Kawabata, Capital September 1 $20,000.00 Add: Net income for September $6,007.00 Less: Withdrawal by owner. -$3,000.00 Kawabata, Capital September 30 $23,007.00 YASUNARI KAWABATA, D.D.S. Statement of Owners’ Equity For the Month of September As of September 30 Assets Liabilities and Owner's Equity Cash $12,133.00 Accounts Payable $13,680.00 Accounts Receivable $6,950.00 Yasunari Kawabata, Capital $23,007.00 Supplies on Hand $612.00 Furniture and Equipment $17,280.00 Accum. depreciation -$288.00 Total assets $36,687.00 Total liabilities and owner's equity $36,687.00 e) YASUNARI KAWABATA, D.D.S. Post-Closing Trial Balance As of September 30 Debit Credit Cash $12,133.00 Accounts Receivable $6,950.00 Supplies $612.00 Furniture and Equip. $17,280.00 Acc. depreciation 288 Accounts Payable $13,680.00 Yasunari Kawabata, Capital $23,007.00 Total $36,975.00 $36,975.00

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