P$3\mathrm{.}1($LO $2,4)($Transactions$,$ Financial Statements$$Service Company$)$ Listed below are the

transactions of Yasunari Kawabata, D$.$D$.$S$.,$ for the month of September.

Sept. $1$ Kawabata begins practice as a dentist, invests $$20,000$ cash, and issues $2,000$ shares of

$$10$ par stock.

$2$ Purchases dental equipment on account from Green Jacket Co$.$ for $$17,280.$

$4$ Pays rent for offi ce 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 offi ce expenses, $$430.$

$14$ Bills patients $$5,820$ for services performed.

$18$ Pays Green Jacket Co$.$ on account, $$3,600.$

$19$ Pays a dividend of $$3,000$ cash.

$20$ 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 offi ce

expenses $$85.$

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

Instructions

a$.$ Enter the transactions shown above in appropriate general ledger accounts $($use T$-$accounts$).$

Use the following ledger accounts: Cash, Accounts Receivable, Supplies, Equipment, Accumulated

Depreciation$$Equipment$,$ Accounts Payable, Common Stock, Retained Earnings, Dividends,

Service Revenue, Rent Expense, Offi ce Expense, Salaries and Wages Expense, Supplies Expense,

Depreciation Expense, and Income Summary. Allow $10$ lines for the Cash and Income Summary

accounts, and $5$ lines for each of the other accounts needed. Record depreciation using a $5-$year life

on the equipment, the straight$-$line method, and no salvage value. Do not use a drawing account.

$3-64$ CHAPTER $3$ The Accounting Information System

b$.$ Prepare a trial balance.

c$.$ Prepare an income statement, a retained earnings statement, and an unclassifi ed balance sheet.

d$.$ Close the ledger.

e$.$ Prepare a post$-$closing trial balance.