Question

Denise decided to start a dental practice. the first 5 transactions for the business follow. for each transaction, 1) determine which two accounts are affected, 2) set up T accounts for the affected accounts, 3) enter the debit and credit amounts in the T accounts.

1. denise invested $90,000 cash in the business

2. Paid $30,000 in cash for equipment

3. performed services for cash amounting in $9,000

4. paid $3,800 cash for ad expenses

5. paid $3,000 cash for supplies

Answer 1

Solution 1:

Journal Entries
Event	Particulars	Debit	Credit
1	Cash Dr	$90,000.00
	To Owner's capital		$90,000.00
	(To record capital invested in businees)
2	Equipment Dr	$30,000.00
	To Cash		$30,000.00
	(To record purchase of equipment)
3	Cash Dr	$9,000.00
	To Service Revenue		$9,000.00
	(To record service performed for cash)
4	Advertisement expenses Dr	$3,800.00
	To Cash		$3,800.00
	(Cash paid for ad expense)
5	Supplies Dr	$3,000.00
	To Cash		$3,000.00
	(To record purchase of supplies)

Solution 2&3:

Cash
Particulars	Debit	Particulars	Credit
To Owner's capital	$90,000.00	By Equipment	$30,000.00
To Service Revenue	$9,000.00	By Advertisement expenses	$3,800.00
		By Supplies	$3,000.00
		Ending balance	$62,200.00
Total	$99,000.00	Total	$99,000.00

Equipment
Particulars	Debit	Particulars	Credit
To Cash	$30,000.00	Ending balance	$30,000.00
Total	$30,000.00	Total	$30,000.00

Owner's Capital
Particulars	Debit	Particulars	Credit
Ending balance	$90,000.00	By Cash	$90,000.00
Total	$90,000.00	Total	$90,000.00

Service Revenue
Particulars	Debit	Particulars	Credit
Ending balance	$9,000.00	By Cash	$9,000.00
Total	$9,000.00	Total	$9,000.00

Advertisement Expenses
Particulars	Debit	Particulars	Credit
To Cash	$3,800.00	Ending balance	$3,800.00
Total	$3,800.00	Total	$3,800.00

Supplies
Particulars	Debit	Particulars	Credit
To Cash	$3,000.00	Ending balance	$3,000.00
Total	$3,000.00	Total	$3,000.00