Intermediate Accounting – Multi-step

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Problem 3-1 (Part Level Submission)

Listed below are the transactions of Yasunari Kawabata, D.D.S., for the month of September.

Sept. 1 Kawabata begins practice as a dentist and invests $23,150 cash.

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2 Purchases dental equipment on account from Green Jacket Co. for $17,460.

4 Pays rent for office space, $867 for the month.

4 Employs a receptionist, Michael Bradley.

5 Purchases dental supplies for cash, $1,028.

8 Receives cash of $1,750 from patients for services performed.

10 Pays miscellaneous office expenses, $530.

14 Bills patients $7,470 for services performed.

18 Pays Green Jacket Co. on account, $4,620.

19 Withdraws $3,100 cash from the business for personal use.

20 Receives $1,070 from patients on account.

25 Bills patients $3,940 for services performed.

30 Pays the following expenses in cash: Salaries and wages $1,890; miscellaneous office expenses $99. (Record each separately.)

30 Dental supplies used during September, $390.

Record depreciation using a 5-year life on the equipment, the straight-line method, and no salvage value.

Enter the transactions shown above in appropriate general ledger accounts (use T-accounts). (Post entries in the order displayed in the problem statement.)

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