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Listed below are transactions of Zachary McDaniel, DDS since opening his practic

ID: 2328005 • Letter: L

Question

Listed below are transactions of Zachary McDaniel, DDS since opening his practice in September 2018.

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

Receive 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 Sept.

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

Receive 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 Oct.

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

Receive 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 Dec.

Provide trial balance for each October, November & December; Provide balance sheet for each October, November & December & provide statement of cash flows for end of year

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

Receive 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 Sept.

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

Receive 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 Oct.

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

Receive 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 Dec.

Explanation / Answer

Trial Balance Sept Oct Nov Dec Cash $32,253 $12,195 $9,149 $17,807 Dental Supplies $612 $930 $630 $740 Accounts receivable $4,840 $12,765 $10,988 $10,020 Allowance for uncollectible receivables $500 $675 $1,163 $1,264 Equipment $17,280 $29,280 $29,280 $29,280 Accumulated Depreciation $288 $776 $1,264 $1,752 Mc Daniel Capital $40,000 $40,000 $40,000 $40,000 MC Daniel Drawing $3,000 $7,000 $9,500 $9,500 $0 Accounts Payable $13,680 $10,180 $0 $55 R&D payable $2,500 $2,200 Service Revenue $7,510 $18,465 $29,690 $42,365 Interest income $120 $185 $239 $265 Rent $680 $1,360 $2,040 $2,720 Office expenses $515 $870 $1,275 $1,495 Salaries and Wages $1,800 $3,600 $5,400 $7,300 Supplies expenses $330 $755 $1,380 $1,795 Bad Debts $500 $750 $1,325 $1,612 Depreciation $288 $776 $1,264 $1,752 Maintenance $125 $180 Research and Development $2,500 $3,700 Total $62,098 $62,098 $70,281 $70,281 $74,856 $74,856 $87,901 $87,901 Balance Sheet September October November December Assets Current Assets: Cash $32,253 $12,195 $9,149 $17,807 Dental Supplies $612 $930 $630 $740 Accounts receivable $4,840 $12,765 $10,988 $10,020 Allowance for uncollectible receivables ($500) ($675) ($1,163) ($1,264) Total Current Assets $37,205 $25,215 $19,604 $27,303 Fixed Assets Equipment $17,280 $29,280 $29,280 $29,280 Accumulated Depreciation ($288) $16,992 ($776) $28,504 ($1,264) $28,016 ($1,752) $27,528 Total Assets $54,197 $53,719 $47,620 $54,831 Liabilities Current Liabilities: Accounts Payable $13,680 $10,180 $0 $55 R&D Payable $2,500 $2,200 Owner's Equity Mc Daniel Capital $40,000 $40,000 $40,000 $40,000 MC Daniel Drawing ($3,000) ($7,000) ($9,500) ($9,500) Retained Earnings $3,517 $10,539 $14,620 $22,076 Total Owners Equity $40,517 $43,539 $45,120 $52,576 Total Liabilities and Owner's Equity $54,197 $53,719 $47,620 $54,831

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