SOLUTIONS TO PROBLEMS

PROBLEM 3-1

(a) (Explanations are omitted.) and (d)

Cash

Furniture and Equipment
Sept.
1

20,000
Sept.
4

680

Sept.
2

17,280

8

1,690

5

942

20

980

10

430

18

3,600

Yasunari Kawabata, Capital

19

3,000

Sept.
19

3,000
Sept.
1

20,000

30

1,800

30

6,007

30

85

Bal.
30

23,007

30
Bal
12,133

Accounts Receivable

Sept.
14

5,820
Sept.
20

980

25

2,110

Accounts Payable
Bal.
30

6,950

Sept.
18

3,600
Sept.
2

17,280

Bal.
30

13,680
Rent Expense

Sept.
4

680
Sept.
30

680

Supplies on Hand

Service Revenue
Sept.
5

942
Sept.
30

330

Sept.
30

9,620
Sept.
8

1,690
Bal.
30

612

14

5,820

25

2,110

9,620

9,620

Miscellaneous Office Expense

Accumulated Depreciation
Sept.
10

430
Sept.
30

515

Sept.
30

288

30

85

515

515

Office Salaries Expense

Sept.
30

1,800
Sept.
30

1,800

Supplies Expense

Sept.
30

330
Sept.
30

330

PROBLEM 3-1 (Continued)

Depreciation Expense

Income Summary
Sept.
30

288
Sept.
30

288

Sept.
30

680
Sept.
30

9,620

30

515

30

1,800

30

330

30

288

30
Inc.
6,007

9,620

9,620

(b) YASUNARI KAWABATA, D.D.S.
Trial Balance
September 30

Debit Credit
Cash
12,133

Accounts Receivable
6,950

Supplies on Hand
612

Furniture and Equipment
17,280

Accumulated Depreciation

288
Accounts Payable

13,680
Yasunari Kawabata, Capital

17,000
Service Revenue

9,620
Rent Expense
680

Miscellaneous Office Expense
515

Office Salaries Expense
1,800

Supplies Expense
330

Depreciation Expense 288 Totals
40,588
40,588

PROBLEM 3-1 (Continued)

(c) YASUNARI KAWABATA, D.D.S.
Income Statement
For the Month of September
Service revenue

$9,620
Expenses:

Office salaries expense
$1,800

Rent expense
680

Supplies expense
330

Depreciation expense
288

Miscellaneous office expense 515

Total expenses

3,613
Net income

$6,007

YASUNARI KAWABATA, D.D.S.
Statement of Owner’s Equity
For the Month of September
Kawabata, Capital September 1

$20,000
Add: Net income for September

6,007

26,007
Less: Withdrawal by owner

3,000
Kawabata, Capital September 30

$23,007

PROBLEM 3-1 (Continued)

YASUNARI KAWABATA, D.D.S.
Balance Sheet
As of September 30
Assets

Liabilities and Owner’s Equity
Cash
$12,133

Accounts payable
$13,680
Accounts receivable
6,950

Yasunari Kawabata, Capital
23,007
Supplies on Hand
612

Furniture and equip.
17,280

Accum. depreciation (288)

Total liabilities and Total assets
$36,687

owner’s equity
$36,687

(e) YASUNARI KAWABATA, D.D.S.
Post-Closing Trial Balance
September 30

Debit Credit
Cash
12,133

Accounts Receivable
6,950

Supplies on Hand
612

Furniture and Equipment
17,280

Accumulated Depreciation

288
Accounts Payable

13,680
Yasunari Kawabata, Capital 23,007 Totals
36,975