Reference no: EM131902216
Problem
Listed below are the transactions of John Kawabata, D.D.S., for the month of September.
Sept. 1 Kawabata begins practice as a dentist and invests $21,480 cash.
2 Purchases dental equipment on account from Green Jacket Co. for $19,140.
4 Pays rent for office space, $763 for the month.
4 Employs a receptionist, Michael Bradley.
5 Purchases dental supplies for cash, $966.
8 Receives cash of $1,720 from patients for services performed.
10 Pays miscellaneous office expenses, $450.
14 Bills patients $6,090 for services performed.
18 Pays Green Jacket Co. on account, $4,390.
19 Withdraws $3,980 cash from the business for personal use.
20 Receives $1,070 from patients on account.
25 Bills patients $2,620 for services performed.
30 Pays the following expenses in cash: Salaries and wages $3,400; miscellaneous office expenses $98. (Record each separately.)
30 Dental supplies used during September, $370.
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). 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.