Question

Sept. 1		Kawabata begins practice as a dentist and invests $20,000 cash.
2		Purchases dental equipment on account from Green Jacket Co. for $17,280.
4		Pays rent for office space, $680 for the month.
4		Employs a receptionist, Michael Bradley.
5		Purchases dental supplies for cash, $942.
8		Receives cash of $1,690 from patients for services performed.
10		Pays miscellaneous office expenses, $430.
14		Bills patients $5,820 for services performed.
18		Pays Green Jacket Co. on account, $3,600.
19		Withdraws $3,000 cash from the business for personal use.
20		Receives $980 from patients on account.
25		Bills patients $2,110 for services performed.
30		Pays the following expenses in cash: Salaries and wages $1,800; miscellaneous office expenses $85. (Record each separately.)
30		Dental supplies used during September, $330.

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

Problem:

Please prepare a classified balance sheet, a single step income statement, a statement of cash flow using the direct method and a statement of stockholders’ equity.

Answer 1

		Journal Entries
1.09		Cash	20000
		To Equity		20000
2.09		Equipment	17280
		To Green Jacket Co
4.09		Rent	680
		To Cash		680
5.09		Dental Supplies	942
		To Cash		942
8.09		Cash	1690
		To Sales		1690
10.09		Office Expense	430
		To Cash		430
14.09		Accounts Receivable	5820
		To Sales		5820
18.09		Green Jacket Co	3600
		To Cash		3600
19.09		Drawings	3000
		To Cash		3000
20.09		Cash	980
		To Accounts Receivable		980
25.09		Accounts Receivable	2110
		To Sales		2110
30.09		Salaries and Wages	1800
		To Cash		1800
30.09		Office Expense	85
		To Cash		85
30.09		Supplies Expense	330
		To Supplies		330
30.09		Depreciation	3456
		To Equipment		3456
		(17280-0)/5
		Kawabata
		Balance Sheet as on 30the September
	Liabilities		Assets
	Equity	19839	Equipment	17280
			Less : Depreciation	-3456
			Net Equipment	13824
	Current Liabilities
	Accounts payable	13680	Current assets
			Supplies Inventory	612
			Cash	12133
			Accounts Receivable	6950
		33519		33519
		Kawabata
		Income statement for the month ended 30the September
	Sales		9620
	Less :
	Rent	-680
	Miscellaneous expense	-515
	Salaries	-1800
	Depreciation	-3456
	Supplies Expense	-330	-6781
	Net Income		2839
		Kawabata
		Cash flow statement as on 30th September
	Cash Received on account of investment	20000
	Cash Received from customer	1690
	Cash Received from customer	980
	Rent Paid	-680
	Supplies Purchased	-942
	Miscellaneous expense	-515
	Payment for equipment	-3600
	Drawings	-3000
	Salaries	-1800
	Cash Balance as on 30th Sept	12133
		Statement of stockholder's equity
		Initial Investment	20000
		Less : Drawings	-3000
		Net Income for the month	2839
		Closing stockholder's equity	19839