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

Question

Listed below are the transactions of Leon 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.

a) 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.)
b)Prepare a trial balance.

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

d)Prepare a statement of owner’s equity. (List items that increase owner's equity first.)
e)Prepare an unclassified balance sheet and Prepare a post-closing trial balance

f)Close the ledger

Sept. 1 Kawabata begins practice as a dentist and invests $21,130 cash. 2 Purchases dental equipment on account from Green Jacket Co. for $17,520. 4 Pays rent for office space, $770 for the month. 4 Employs a receptionist, Michael Bradley. 5 Purchases dental supplies for cash, $1,015. 8 Receives cash of $1,720 from patients for services performed. 10 Pays miscellaneous office expenses, $530. 14 Bills patients $7,190 for services performed. 18 Pays Green Jacket Co. on account, $4,200. 19 Withdraws $3,550 cash from the business for personal use. 20 Receives $1,060 from patients on account. 25 Bills patients $4,090 for services performed. 30 Pays the following expenses in cash: Salaries and wages $2,270; miscellaneous office expenses $89. (Record each separately.) 30 Dental supplies used during September, $400.

Explanation / Answer

Answer:-

1.) Journal Entries:-

S.no. Particulars Amount (Dr.) Amount (Cr.)

1.) Purchase Dental Equipment A/c Dr. 17520

To Green JAcket co. 17520

( Being Equipment purchase for credit)

2.) Rent payable A/c Dr. 770

To Bank 770

( Being rent paid for the month of september)

3.) Purchase Dental supplies A/c Dr. 1015   

To Bank 1015

( Being material purchase for dental treatment)

4.) Cash A/c Dr. 1720

To Patients 1720

( Being cash received from patients for providing service)

5.) Expenses A/c Dr. 530

To Bank 530

( Being expenses for clinic has been paid)

6.) Green Jacket Co. A/c Dr. 4200

To Bank 4200

( Being cash paid for equipment purchase on credit)

7.) Drawing A/c Dr. 3550

To Bank 3550

( Being cash withdrawal for personal purpose)

8.) Bank A/c Dr. 1060

To patients account 1060

( Being payment received form patients)

9.) Salaries & Wages A/c Dr. 2270

TO Cash 2270

( Being amount paid for salary & wages)

10.) Miscellaenous Account Dr. 89

To Cash 89

( Being amount paid in cash for expenses)

3. Income Statement:-

Particulars Amount

Revenues:-

Supplies ( 1720 + 7190 ) = 8910

Expenses:-

Rent = (770)

Office Expenses = (530)

Salary = (2270)

Miscellaneous = (89)

Dental supplies purchased = (1015)

Profit / (Loss) = 4236

4.) Owners Equity:-

Cash Introduced = 21130

Add:- Receive Cash form patients ( 1060 + 1720) = 2780

Less:- Drawings = 3550

Less:- PAyment for machine = 4200

Owners Equity = 16160

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