CH3Example_1_3131 - 12 September 30 th Paid $300 dividend...

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Chapter 3 Example #1 3131 1. Dental Services, Inc. opened business September 1 st of the year. Dr. Smith invests $20,000 cash in the business and receives 20,000 shares of $1.00 par common stock. 2. September 2 nd : Purchased furniture and dental equipment on account for $17,280 from ABC. Co. 3. September 4 th : Paid $680 in rent. 4. September 5 th : Purchased supplies for cash, $942 5. September 8 th : Receives $1690 from patients for dental services 6. September 10 th : Pays miscellaneous office expenses $430 7. September 14 th : Bills patients $5120 for services performed 8. September 18 th : Pays $3600 to ABC company on Account. 9. September 20 th : Receives $980 from patients on account 10. September 25 th : Bills patients $2110 for services performed 11. September 30 th : Pays the following expenses in cash: Office salaries $1400, Miscellaneous Office Expense $85
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Unformatted text preview: 12. September 30 th : Paid $300 dividend to stockholder. Adjusting entries: 1) Dental supplies at the end of the month are inventoried and are $612. 2) Depreciation expense is recorded for September. Use a 5 year life on the asset. 3) A $500 utility bill for September was received but will be paid in October. • Prepare journal entries for all transactions. • Post journal entries to the accounts in the ledger and prepare a preliminary trial balance. • Make the adjusting entries to the accounts and update the balances of affected accounts in the ledger. • Prepare an adjusted trial balance. • Prepare the income statement, balance sheet and statement of retained earnings. • Make the closing entries. • Prepare a post closing trial balance....
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This note was uploaded on 12/03/2009 for the course ACG 3131 taught by Professor Rotella during the Spring '08 term at University of Central Florida.

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