Problems

P$2\mathrm{.}1($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. $\backslash (\backslash$quad $1\backslash )$ Kawabata begins practice as a dentist, invests $\backslash (\backslash$$ $20,000\backslash )$ cash, and issues $2,000$ shares of $\backslash$$$10$ par stock.

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

$4$ Pays rent for office space, $\backslash (\backslash$$ $680\backslash )$ for the month.

$4$ Employs a receptionist, Michael Bradley.

$5$ Purchases dental supplies for cash, $\backslash (\backslash$$ $942\backslash ).$

$8$ Receives cash of $\backslash$$$1,690$ from patients for services performed.

$10$ Pays miscellaneous office expenses, $\backslash (\backslash$$ $430\backslash ).$

$14$ Bills patients $\backslash (\backslash$$ $5,820\backslash )$ for services performed.

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

$19$ Pays a dividend of $\backslash (\backslash$$ $3,000\backslash )$ cash.

$20$ Receives $\backslash (\backslash$$ $980\backslash )$ from patients on account.

$25$ Bills patients $\backslash (\backslash$$ $2,110\backslash )$ for services performed.

$30$ Pays the following expenses in cash: salaries and wages $\backslash (\backslash$$ $1,800\backslash )$; miscellaneous office expenses $\backslash (\backslash$$ $85\backslash ).$

$30$ Dental supplies used during September, $\backslash (\backslash$$ $330\backslash ).$

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, Office 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.

b$.$ Prepare a trial balance.

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

d$.$ Close the ledger.

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