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PROBLEMS P3-1 (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 and invests $20,000 cash. 2 Purchases dental equipment on account from Groen 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 $1,600 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 Bilis patients $2,110 for services performed. 30 Pays the following expense in cash Salaries and wages $1,800, miscellaneous office expenses $86. 30 Dental supplies used during September $330. 144 Chapter 3 The Accounting Information System 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, Owner's Capital, Service Revenue, Rent Expense, Summary: Allow 10 lines for the Cash and Income Summary accounts, and 5 lines for each of the Office Expense, Salaries and Wages Expense, Supplies Expense, Depreciation Expense, and Income the method, and no salvage value. Do not use a drawing account. (b) Prepare a trial balance. Prepare an income statement, a statement of owner's equity, and an unclassified balance sheet (d) Close the ledger (e) Prepare a post-closing trial balance Arresy was founded in January

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