Question

1-Sep	Kawabata begins practice as a dentist, invests $20,000 cash
2-Sep	Purchases dental equipment on account from Green Jacket Co. for $17,280
4-Sep	Pays rent for office space, $680 for the month
4-Sep	Employs a receptionist, Michael Bradley
5-Sep	Purchases dental supplies for cash, $942
8-Sep	Receives cash of $1690 from patients for services performed
10-Sep	Pays miscellaneous office expenses, $430
14-Sep	Bills patients $5,280 for services performed
18-Sep	Pays Green Jacket Co. on account, $3,600
19-Sep	Pays a dividend of $3,000 cash
20-Sep	Receives $980 from patients on account
25-Sep	Bills patients $2,110 for services performed
30-Sep	Pays the following expenses in cash, salaries and wages $1800; miscellaneous office expenses $85
30-Sep	Dental supplies used during. September, $330

1. Record the September 2020 transactions in the General Journal using the Journal template and proper journal entry format. Note: the last September 30, 2020, transaction in the textbook is an adjusting entry.
   1. Indent credits ten spaces on Excel which is approximately one-half inch.
   2. This is a sole proprietorship, so in the September 1^st transaction, credit the Owner’s Capital account for the $20,000 investment.
   3. In the September 19^th transaction, debit the Owner’s Drawing account
2. Prepare a Worksheet (14 columns) with the following columns:
   1. Trial Balance.
   2. Adjustments (add two small columns to put cross-referenced letters for adjusting entries).
   3. Adjusted Trial Balance.
   4. Income Statement.
   5. Balance Sheet.
   6. Post-Closing Trial Balance (no textbook example showing these columns).
      1. Complete the Post-Closing Trial Balance after journalizing the closing entries and posting closing entries to the T accounts (Step 6).
3. Journalize the adjusting entry in the journal and post it to the appropriate general ledger T accounts. Balance out the general ledger T accounts.
   1. Use a checkmark in the journal posting reference column to indicate the transaction has been posted.
4. Prepare the following financial statements for September 30, 2020, using proper format on the financial statement template created in class:
   1. Single-Step Income Statement.
   2. Statement of Owner’s Equity (Sole proprietorship).
   3. Classified Balance Sheet (for a sole proprietorship). The Owner’s Equity section should have one line called Owner’s Capital. This should contain the ending capital from the Statement of Owner’s Equity.
5. Journalize the closing entries, as of the Balance Sheet date, in the journal and post them to the general ledger T accounts.
   1. Use the Owner’s Capital and the Owner’s Drawing accounts in the closing entries. Do not use the Retained Earning account at all.
   2. Balance out T accounts.
   3. Complete the Post-Closing Trial Balance columns on the Worksheet (Step 3).
   4. Use a checkmark in the journal posting reference column to indicate the transaction has been posted.

Answer 1

Date	Account Titles	Debit	Credit
Sept.
1	Cash	$20000
	owner capital		$20000
2	Dental Equipment	$17,280
	Accounts payable - Green Jacket Co.		$17,280
4	Rent expense	$680
	Cash		$680
4	No entry
5	Supplies	$942
	Cash		$942
8	Cash	$1,690
	service revenue		$1690
10	Misc office expense	$430
	Cash		$430
14	Accounts receivable	$5280
	service revenue		$5280
18	Accounts payable	$3,600
	Cash -Green Jacket Co.		$3,600
19	owners drawing (Dividends)	$3,000
	Cash		$3,000
20	Cash	$980
	Accounts receivable		$980
25	Accounts receivable	$2110
	service revenue		$2110
30	Salaries and wages expense	$1800
	Misc office expense	$ 85
	Cash		$1,885
30	supplies expense	$330
	supplies		$330

Prepare T-accounts as follows:

Cash
1	$20.000	2	$680
8	$1,690	5	$942
20	$980	10	$430
		18	$3,600
		19	$3000
		30	$1,885
End. Bal.	$ 12133

Dental Equipment
2	$17,280
End. Bal.	$17,280
Accounts payable
18	$3,600	2	$17,280
		End. Bal.	$13,680
Rent expense
4	$680
End. Bal.	$680
Supplies
5	$942	30	$330
End. Bal.	$612

Supplies expense
30	$330
End. Bal.	$330

service revenue
		8	$1,690
		14	$5280
		25	$2110
		End. Bal.	$9080

Accounts receivable
14	$5280	20	$980
25	$2110
End. Bal.	$6410

Misc. Office expense
10	$430
30	$85
End. Bal.	$515

Salaries and wage expense
30	$1,800
End. Bal.	$1,800
Dividends
19	$3,000
End. Bal.	$3,000