Reference no: EM132631139

Question - Listed below are the transactions of Daniel Jackson, D.D.S., for the month of September.

Sept. 1 Jackson begins practice as a dentist, invests $21,930 cash and issues 2,193 shares of $10 par stock.

Sept. 2 Purchases dental equipment on account from Green Jacket Co. for $18,000.

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, $990.

Sept. 8 Receives cash of $1,840 from patients for services performed.

Sept. 10 Pays miscellaneous office expenses, $440.

Sept. 14 Bills patients $5,940 for services performed.

Sept. 18 Pays Green Jacket Co. on account, $3,300.

Sept. 19 Pays a dividend of $2,750 cash.

Sept. 20 Receives $1,000 from patients on account.

Sept. 25 Bills patients $2,230 for services performed.

Sept. 30 Pays the following expenses in cash: Salaries and wages $1,620; miscellaneous office expenses $86.

Sept. 30 Dental supplies used during September, $360.

Required -

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

1. Prepare income statement.

2. Prepare a retained earnings statement.