Question

P3-1 (L02,4,5) (Transactions, Financial Statements—Service Company) Listed below are the transactions of Yasunari Kawa-bata, D.D.S., for the month of September.

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.
30. Dental supplies used during September, $330.

Record the transactions in General Journal format only, ***** Use the Drawings account.

Determine the balances in each of the accounts as of September 30.

Answer 1

Solution:

Journal Entries - Yasunari Kawa-bata
Date	Particulars	Debit	Credit
1-Sep	Cash Dr	$20,000.00
	To Kawabata capital		$20,000.00
	(To record capital invested in business)
2-Sep	Dental Equipment Dr	$17,280.00
	To accounts payable		$17,280.00
	(To record puchase of equipment)
4-Sep	Office rent Dr	$680.00
	To Cash		$680.00
	(To record payment of office rent)
4-Sep	No Entry
5-Sep	Dental Supplies Dr	$942.00
	To Cash		$942.00
	(To record purchase of dental supplies)
8-Sep	Cash Dr	$1,690.00
	To Service revenue		$1,690.00
	(To record service performed)
10-Sep	Office expenses Dr	$430.00
	To Cash		$430.00
	(To record office expenses)
14-Sep	Accounts receivables Dr	$5,820.00
	To Service revenue		$5,820.00
	(To record service performed)
18-Sep	Accounts payable Dr	$3,600.00
	To Cash		$3,600.00
	(To record payment to vendor)
19-Sep	Drawings Dr	$3,000.00
	To Cash		$3,000.00
	(To record withdrawl of funds for personal use)
20-Sep	Cash Dr	$980.00
	To Accounts receivables		$980.00
25-Sep	Accounts receivables Dr	$2,110.00
	To Service revenue		$2,110.00
	(To record service performed)
30-Sep	Salaries and wages Dr	$1,800.00
	Misellenous office expenses	$85.00
	To Cash		$1,885.00
	(To record payment of expenses)
30-Sep	Supplies Expenses Dr	$330.00
	To Supplies		$330.00
	(To record supply used)

Cash
Date	Particulars	Debit	Date	Particulars	Credit
1-Sep	Kawabata capital	$20,000.00	4-Sep	Office rent	$680.00
8-Sep	Cash	$1,690.00	5-Sep	Dental supplies	$942.00
20-Sep	Accounts receivables	$980.00	10-Sep	Office expenses	$430.00
			18-Sep	Accounts payable	$3,600.00
			19-Sep	Drawings	$3,000.00
			30-Sep	Salaries and wages expenses	$1,800.00
			30-Sep	Miscellenous office expenses	$85.00
				Ending balance	$12,133.00
	Total	$22,670.00		Total	$22,670.00

Kawabata Capital
Date	Particulars	Debit	Date	Particulars	Credit
	Ending balane	$20,000.00	1-Sep	Cash	$20,000.00
	Total	$20,000.00		Total	$20,000.00

Dental Equipment
Date	Particulars	Debit	Date	Particulars	Credit
2-Sep	Accounts payable	$17,280.00		Ending balance	$17,280.00
	Total	$17,280.00		Total	$17,280.00

Accounts payable
Date	Particulars	Debit	Date	Particulars	Credit
18-Sep	Cash	$3,600.00	2-Sep	Dental Equipment	$17,280.00
	Ending balance	$13,680.00
	Total	$17,280.00		Total	$17,280.00

Office Rent
Date	Particulars	Debit	Date	Particulars	Credit
4-Sep	Cash	$680.00		Endig balance	$680.00
	Total	$680.00			$680.00

Dental Supplies
Date	Particulars	Debit	Date	Particulars	Credit
5-Sep	Cash	$942.00	30-Sep	Supplies expense	$330.00
				Ending balance	$612.00
	Total	$942.00		Total	$942.00

Service revenue
Date	Particulars	Debit	Date	Particulars	Credit
	Ending balance	$9,620.00	8-Sep	Cash	$1,690.00
			14-Sep	Accounts receivables	$5,820.00
			25-Sep	Accounts receivables	$2,110.00
	Total	$9,620.00		Total	$9,620.00

Miscellenous office expenses
Date	Particulars	Debit	Date	Particulars	Credit
10-Sep	Cash	$430.00		Ending balance	$430.00
	Total	$430.00		Total	$430.00

Accounts receivables
Date	Particulars	Debit	Date	Particulars	Credit
14-Sep	Service revenue	$5,820.00	20-Sep	Cash	$980.00
25-Sep	Service revenue	$2,110.00		Ending balance	$6,950.00
	Total	$7,930.00		Total	$7,930.00

Drawings
Date	Particulars	Debit	Date	Particulars	Credit
18-Sep	Cash	$3,000.00		Ending balance	$3,000.00
	Total	$3,000.00		Total	$3,000.00

Salaries and Wages expense
Date	Particulars	Debit	Date	Particulars	Credit
30-Sep	Cash	$1,800.00		Ending balance	$1,800.00
	Total	$1,800.00		Total	$1,800.00

Miscellenous office expenses
Date	Particulars	Debit	Date	Particulars	Credit
30-Sep	Cash	$85.00		Ending balance	$85.00
	Total	$85.00		Total	$85.00

Supplies expense
Date	Particulars	Debit	Date	Particulars	Credit
30-Sep	Supplies	$330.00		Ending balance	$330.00
	Total	$330.00		Total	$330.00