Question

Listed below are transactions of Zachary McDaniel, DDS since opening his practice in September 2018.

Sept. 1	McDaniel begins a practice as a dentist and invests $40,000 cash
Sept. 2	Purchases dental equipment on account from Green Jacket Co. for $17,280, 5 year useful life, straight line method.
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 $942.
Sept. 8	Receive cash of $1,690 from patients for services performed.
Sept. 10	Pays miscellaneous office expenses, $430.
Sept. 14	Bills patients $5,820 for services performed.
Sept. 18	Pays Green Jacket Co. on account, $3,600.
Sept. 19	Withdraws $3,000 cash from the business for personal use.
Sept. 20	Receives $980 from patients on account.
Sept. 25	Bills patients $2,110 for services performed.
Sept. 30	Pays the following expenses in cash. Salaries and wages $1,800; miscellaneous office expenses $85.
Sept. 30	Dental Supplies used during September, $330
Sept. 30	Receives $120 in interest income on deposit accounts.
Sept. 30	Reserve for Uncollected Receivables of $500
Sept. 30	Prepares Closing Entries for Sept.
Oct. 1	Purchases dental equipment w/ cash from Smiling Teeth for 12,000, 5 year useful life, straight line method.
Oct. 2	Pays rent for office space, $680 for the month.
Oct. 5	Receives $650 from patients on account.
Oct. 5	Purchases dental supplies for cash $743.
Oct. 8	Receive cash of $1,225 from patients for services performed.
Oct. 10	Pays miscellaneous office expenses, $230.
Oct. 12	Bills patients $5,620 for services performed.
Oct. 15	Pays Green Jacket Co. on account, $3,500.
Oct. 15	Withdraws $4,000 cash from the business for personal use.
Oct. 20	Receives $1,080 from patients on account.
Oct. 25	Bills patients $4,110 for services performed.
Oct. 30	Pays the following expenses in cash. Salaries and wages $1,800; miscellaneous office expenses $125.
Oct. 31	Dental Supplies used during September, $425
Oct. 31	Receives $65 interest income on deposit accounts.
Oct. 31	Reserve for Uncollectible Accounts of $750.00
Oct. 31	Accounts deemed uncollectible of $75
Oct. 31	Prepares Closing Entries for Oct.
Nov. 1	Maintenance on equipment of $125, paid w/ cash.
Nov. 1	Invests in Research & Development with other dentists of $2,500 on account
Nov. 2	Pays rent for office space, $680 for the month.
Nov. 5	Receives $2,510 from patients on account.
Nov. 5	Purchases dental supplies for cash $325.
Nov. 8	Receive cash of $2,225 from patients for services performed.
Nov. 10	Pays miscellaneous office expenses, $310.
Nov. 12	Bills patients $5,125 for services performed.
Nov. 15	Pays Green Jacket Co. remaining balance.
Nov. 15	Withdraws $2,500 cash from the business for personal use.
Nov. 20	Receives $8,180 from patients on account.
Nov. 25	Bills patients $3,875 for services performed.
Nov. 30	Pays the following expenses in cash. Salaries and wages $1,800; miscellaneous office expenses $95.
Nov. 30	Dental Supplies used during September, $625
Nov. 30	Receives $54 interest income on deposit accounts.
Nov. 30	Reserve for Uncollectible Accounts of $1,250
Nov. 30	Accounts deemed uncollectible of $87
Nov. 30	Prepares Closing Entries for Nov.
Dec. 1	Maintenance on equipment of $55, paid on account.
Dec. 1	Invests in Research & Development with other dentists of $1,200 on account
Dec. 1	Pays $1,500 on R&D payable.
Dec. 2	Pays rent for office space, $680 for the month.
Dec. 5	Receives $3,125 from patients on account.
Dec. 5	Purchases dental supplies for cash $525.
Dec. 8	Receive cash of $3,575 from patients for services performed.
Dec. 10	Pays miscellaneous office expenses, $175.
Dec. 12	Bills patients $4,975 for services performed.
Dec. 20	Receives $6,757 from patients on account.
Dec. 25	Bills patients $4,125 for services performed.
Dec. 30	Pays the following expenses in cash. Salaries and wages $1,900; miscellaneous office expenses $45.
Dec. 31	Dental Supplies used during September, $415
Dec. 31	Receives $26 interest income on deposit accounts.
Dec. 31	Reserve for Uncollectible Accounts of $1,450
Dec. 31	Accounts deemed uncollectible of $186
Dec. 31	Prepares Closing Entries for Dec.

Provide trial balance for each October, November & December; Provide balance sheet for each October, November & December & provide statement of cash flows for end of year

Answer 1

Trial Balance
	Sept		Oct		Nov		Dec
Cash	$32,253		$12,195		$9,149		$17,807
Dental Supplies	$612		$930		$630		$740
Accounts receivable	$4,840		$12,765		$10,988		$10,020
Allowance for uncollectible receivables		$500		$675		$1,163		$1,264
Equipment	$17,280		$29,280		$29,280		$29,280
Accumulated Depreciation		$288		$776		$1,264		$1,752
Mc Daniel Capital		$40,000		$40,000		$40,000		$40,000
MC Daniel Drawing	$3,000		$7,000		$9,500		$9,500	$0
Accounts Payable		$13,680		$10,180		$0		$55
R&D payable						$2,500		$2,200
Service Revenue		$7,510		$18,465		$29,690		$42,365
Interest income		$120		$185		$239		$265
Rent	$680		$1,360		$2,040		$2,720
Office expenses	$515		$870		$1,275		$1,495
Salaries and Wages	$1,800		$3,600		$5,400		$7,300
Supplies expenses	$330		$755		$1,380		$1,795
Bad Debts	$500		$750		$1,325		$1,612
Depreciation	$288		$776		$1,264		$1,752
Maintenance					$125		$180
Research and Development					$2,500		$3,700
Total	$62,098	$62,098	$70,281	$70,281	$74,856	$74,856	$87,901	$87,901
Balance Sheet
	September		October		November		December
Assets
Current Assets:
Cash	$32,253		$12,195		$9,149		$17,807
Dental Supplies	$612		$930		$630		$740
Accounts receivable	$4,840		$12,765		$10,988		$10,020
Allowance for uncollectible receivables	($500)		($675)		($1,163)		($1,264)
Total Current Assets		$37,205		$25,215		$19,604		$27,303
Fixed Assets
Equipment	$17,280		$29,280		$29,280		$29,280
Accumulated Depreciation	($288)	$16,992	($776)	$28,504	($1,264)	$28,016	($1,752)	$27,528
Total Assets		$54,197		$53,719		$47,620		$54,831
Liabilities
Current Liabilities:
Accounts Payable		$13,680		$10,180		$0		$55
R&D Payable						$2,500		$2,200
Owner's Equity
Mc Daniel Capital	$40,000		$40,000		$40,000		$40,000
MC Daniel Drawing	($3,000)		($7,000)		($9,500)		($9,500)
Retained Earnings	$3,517		$10,539		$14,620		$22,076
Total Owners Equity		$40,517		$43,539		$45,120		$52,576
Total Liabilities and Owner's Equity		$54,197		$53,719		$47,620		$54,831