Record depreciation using a 5-year life on the equipment, the straight-line meth

Question

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

Problem:

Please prepare a classified balance sheet, a single step income statement, a statement of cash flow using the direct method and a statement of stockholders’ equity.

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. (Record each separately.) 30 Dental supplies used during September, $330.

Explanation / Answer

Journal Entries 1.09 Cash 20000 To Equity 20000 2.09 Equipment 17280 To Green Jacket Co 4.09 Rent 680 To Cash 680 5.09 Dental Supplies 942 To Cash 942 8.09 Cash 1690 To Sales 1690 10.09 Office Expense 430 To Cash 430 14.09 Accounts Receivable 5820 To Sales 5820 18.09 Green Jacket Co 3600 To Cash 3600 19.09 Drawings 3000 To Cash 3000 20.09 Cash 980 To Accounts Receivable 980 25.09 Accounts Receivable 2110 To Sales 2110 30.09 Salaries and Wages 1800 To Cash 1800 30.09 Office Expense 85 To Cash 85 30.09 Supplies Expense 330 To Supplies 330 30.09 Depreciation 3456 To Equipment 3456 (17280-0)/5 Kawabata Balance Sheet as on 30the September Liabilities Assets Equity 19839 Equipment 17280 Less : Depreciation -3456 Net Equipment 13824 Current Liabilities Accounts payable 13680 Current assets Supplies Inventory 612 Cash 12133 Accounts Receivable 6950 33519 33519 Kawabata Income statement for the month ended 30the September Sales 9620 Less : Rent -680 Miscellaneous expense -515 Salaries -1800 Depreciation -3456 Supplies Expense -330 -6781 Net Income 2839 Kawabata Cash flow statement as on 30th September Cash Received on account of investment 20000 Cash Received from customer 1690 Cash Received from customer 980 Rent Paid -680 Supplies Purchased -942 Miscellaneous expense -515 Payment for equipment -3600 Drawings -3000 Salaries -1800 Cash Balance as on 30th Sept 12133 Statement of stockholder's equity Initial Investment 20000 Less : Drawings -3000 Net Income for the month 2839 Closing stockholder's equity 19839

Related Questions

Navigate

• Browse (All)
• Browse R
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.