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(Adjusting Entries) The ledger of Chopin Rental Agency on

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(Adjusting Entries) The ledger of Chopin...
(Adjusting Entries)

The ledger of Chopin Rental Agency on March 31 of the current year includes the following selected accounts before adjusting entries have been prepared.

Debit Credit
Prepaid Insurance $3,600
Supplies 2,800
Equipment 25,000
Accumulated Depreciation-Equipment $8,400
Notes Payable 20,000
Unearned Rent Revenue 6,300
Rent Revenue 60,000
Interest Expense -0-
Wage Expense 14,000


An analysis of the accounts shows the following.

1. The equipment depreciates $250 per month.
2. One-third of the unearned rent was earned during the quarter.
3. Interest of $500 is accrued on the notes payable.
4. Supplies on hand total $650.
5. Insurance expires at the rate of $300 per month.


Prepare the adjusting entries at March 31, assuming that adjusting entries are made quarterly. Additional accounts are: Depreciation Expense; Insurance Expense; Interest Payable; and Supplies Expense.

Description/Account Debit Credit
1. Interest ExpenseInterest PayableSupplies ExpensePrepaid InsuranceDepreciation ExpenseSuppliesInsurance ExpenseAccumulated Depreciation-EquipmentUnearned Rent RevenueRent Revenue
Supplies ExpenseInterest ExpenseSuppliesInsurance ExpenseUnearned Rent RevenuePrepaid InsuranceAccumulated Depreciation-EquipmentDepreciation ExpenseRent RevenueInterest Payable
2. Rent RevenueInsurance ExpenseDepreciation ExpensePrepaid InsuranceUnearned Rent RevenueAccumulated Depreciation-EquipmentInterest ExpenseInterest PayableSupplies ExpenseSupplies
Accumulated Depreciation-EquipmentInterest PayableUnearned Rent RevenueInterest ExpenseSupplies ExpenseInsurance ExpenseSuppliesPrepaid InsuranceRent RevenueDepreciation Expense
3. Rent RevenueInterest ExpenseDepreciation ExpenseSuppliesAccumulated Depreciation-EquipmentInterest PayableInsurance ExpenseSupplies ExpensePrepaid InsuranceUnearned Rent Revenue
Unearned Rent RevenueRent RevenueInterest PayableDepreciation ExpenseSupplies ExpenseAccumulated Depreciation-EquipmentInterest ExpenseSuppliesInsurance ExpensePrepaid Insurance
4. Supplies ExpensePrepaid InsuranceAccumulated Depreciation-EquipmentInsurance ExpenseDepreciation ExpenseUnearned Rent RevenueRent RevenueInterest ExpenseInterest PayableSupplies
Interest ExpenseRent RevenueInterest PayableSupplies ExpenseInsurance ExpensePrepaid InsuranceAccumulated Depreciation-EquipmentUnearned Rent RevenueSuppliesDepreciation Expense
5. Accumulated Depreciation-EquipmentSupplies ExpensePrepaid InsuranceSuppliesInsurance ExpenseInterest PayableDepreciation ExpenseUnearned Rent RevenueRent RevenueInterest Expense
Unearned Rent RevenueRent RevenueSupplies ExpenseInterest ExpensePrepaid InsuranceSuppliesInterest PayableDepreciation ExpenseInsurance ExpenseAccumulated Depreciation-Equipment
Submitted: 6 years ago.Category: Finance
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Answered in 17 minutes by:
9/10/2011
Financial Professional: JKCPA, CPA replied 6 years ago
JKCPA
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Category: Finance
Satisfied Customers: 5,884
Experience: Bachelors degree and CPA with Accounting experience.
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Hi,

Thanks for the question.

Please click here for the answer.

Hope this helps!
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JKCPA, CPA
Category: Finance
Satisfied Customers: 5,884
Experience: Bachelors degree and CPA with Accounting experience.
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Customer reply replied 6 years ago

For JK CPA,

P3-1
(Transactions, Financial Statements - Service Company)

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

 

Sep. 1Kawabuta begins practice as a dentist and invests $20,000 cash.
2Purchases furniture and dental equipment on account from Green Jacket Co. for $17,280.
4Pays rent for office space, $680 for the month.
4Employs a receptionist, Michael Bradley.
5Purchases dental supplies for cash, $942.
8Receives cash of $1,690 from patients for services performed.
10Pays miscellaneous office expenses, $430.
14Bills patients $5,820 for services performed.
18Pays Green Jacket Co. on account, $3,600.
19Withdraws $3,000 cash from the business for personal use.
20Receives $980 from patients on account.
25Bills patients $2,110 for services performed.
30Pays the following expenses in cash: office salaries $1,800; miscellaneous office expenses $85.
30Dental supplies used during September, $330.

 

Enter the transactions shown above in appropriate general ledger accounts. Use the following ledger accounts: Cash; Accounts Receivable; Supplies on Hand; Furniture and Equipment; Accumulated Depreciation; Accounts Payable; Yasunari Kawabata, Capital; Service Revenue; Rent Expense; Miscellaneous Office Expense; Office Salaries Expense; Supplies Expense; Depreciation Expense; and Income Summary. Record depreciation using a 5-year life on the furniture and equipment, the straight-line method, and no salvage value. Do not use drawing and retained earnings accounts. (List multiple Income Summary entries in order of expense accounts appearance.)

 

CashFurniture And Equipment
Sep.1

Sep.4

Sep. 2

8 5
20 10 Yasunari Kawabata, Capital
18

Sep.19

Sep. 1

Sep. 30
19 Bal. 30
30
30
Bal. 30 Accounts Payable
Sep. 18 Sep. 2
Accounts Receivable

Bal. 30

Sep. 14Sep. 20
25

Service Revenue

Bal. 30Sep. 30Sep. 8
14

Rent Expense

25
Sep. 4Sep. 30

Supplies on Hand

Accumulated Depreciation
Sep. 5Sep. 30 Sep. 30
Bal. 30
Income Summary
Miscellaneous Office ExpenseSep. 30 Sep. 30
Sep. 10 Sep. 3030
30

 

30
30
30
Office Salaries Expense30
Sep. 30 Sep. 30
Supplies ExpenseDepreciation Expense
Sep. 30Sep. 30

 

Sep. 30Sep. 30

 


 

Prepare a trial balance. (If answer is zero please enter 0, do not leave any answer blank.)

 

YASUNARI KAWABATA, D.D.S.
Trial Balance

September 30

DebitCredit
Cash$$
Accounts Receivable
Supplies on Hand
Furniture and Equipment
Accumulated Depreciation
Accounts Payable
Yasunari Kawabata, Capital
Service Revenue
Rent Expense
Miscellaneous Office Expense
Office Salaries Expense
Supplies Expense
Depreciation Expense

 

 

Totals

$

$


 

Prepare an income statement, a statement of owner's equity, and an unclassified balance sheet. (List multiple debit/credit entries from largest to smallest amount, e.g. 10, 5, 2.)

 

YASUNARI KAWABATA, D.D.S.
Income Statement

For the Month of September

Revenues:
Depreciation expenseMiscellaneous office expenseService revenueOffice salaries expenseRent expenseSupplies expense$
Expenses:
Miscellaneous office expenseDepreciation expenseOffice salaries expenseSupplies expenseService revenueRent expense$
Rent expenseSupplies expenseMiscellaneous office expenseService revenueOffice salaries expenseDepreciation expense
Office salaries expenseService revenueRent expenseDepreciation expenseSupplies expenseMiscellaneous office expense
Rent expenseOffice salaries expenseDepreciation expenseMiscellaneous office expenseSupplies expenseService revenue
Office salaries expenseSupplies expenseDepreciation expenseMiscellaneous office expenseService revenueRent expense

 

Total Expenses

 

Net Income

$

 

YASUNARI KAWABATA, D.D.S.
Statement of Owner's Equity

For the Month of September

Kawabata, Capital September 30Withdrawal by ownerKawabata, Capital September 1Net income for September$
Kawabata, Capital September 1Kawabata, Capital September 30Net income for SeptemberWithdrawal by owner

 

Less: Kawabata, Capital September 30Withdrawal by ownerKawabata, Capital September 1Net income for September

 

Withdrawal by ownerKawabata, Capital September 1Kawabata, Capital September 30Net income for September

$

 

YASUNARI KAWABATA, D.D.S.
Balance Sheet

As of September 30

AssetsLiabilities and Owner's Equity
Cash$Accounts Payable
Accounts ReceivableYasunari Kawabata, Capital
Supplies
Furniture and Equip.
Acc. depreciation

 

 

Total assets

$

Total liabilities and owner's equity

$


 

Prepare a post-closing trial balance. (If answer is zero please enter 0, do not leave any answer blank.)

 

YASUNARI KAWABATA, D.D.S.
Post-closing Trial Balance

September 30

DebitCredit
Cash$$
Accounts Receivable
Supplies on Hand
Furniture and Equipment
Accumulated Depreciation
Accounts Payable
Yasunari Kawabata, Capital

 

 

Totals

$

$

 

Financial Professional: JKCPA, CPA replied 6 years ago
Hello,

Could you post the additional question in a new post? We are only allowed to answer the question(s) that are posted in your original post. Additional questions need to be posted in a new post separately.

Thanks.
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