Accounting

P3-1 a) Cash Yasunari Kawabata D. D. S. Capital Sept 1 20,000 Sept. 4 680 Sept 19 3,000 Sept. 1 20,000 Sept 8 1,690 Sept. 5 942 Sept. 30 6,007 Sept 20 980 Sept. 10 430 23,007 Sept. 18 3,600 Sept. 19 3,000 Accounts Payable Sept. 30 1,800 Sept 18 3,600 Sept. 2 17,280 Sept. 30 85 Sept. 30 13,680 Sept. 30 Bal 12,133 Service Revenue Accounts Receivable Sept 30 9,620 Sept. 8 1,690 Sept. 14 5,820 Sept. 20 980 Sept. 14 5,820 Sept. 5 2,110 Sept. 25 2,110 Sept. 30 Bal 6,950 9,620 9,620 Rent Expense Accumulated Depreciation Sept 4 680 Sept. 30 680 Sept. 30 288 Supplies on Hand Income Sept. 5 942 Sept. 30 330 Sept. 30 680 Sept. 30 9,620 Sept. 30 Bal 612 Sept. 30 515 Sept. 30 1,800 Office Salaries Expense Sept. 30 288 Sept 30 1,800 Sept. 30 1,800 Sept. 30 330 Sept. 30 6,007 Supplies Expense 9,620 9620 Sept 30 330 Sept. 30 330

Misc. Office Expense Sept 10 430 Sept. 30 515 Sept. 30 85 515 Depreciation Expense Sept 30 288 Sept. 30 288 b) Yasunari Kawabata D. D. S. Trial Balance September 30, 2012 DebitCredit Cash 12,133 Accounts Receivable 6,950 Supplies On hand 612 Furniture & Equipment 17,280 Accumulated Depreciation 288 Accounts Payable 13,680 Capital 17,000 Service Revenue 9,620 Rent Expense 680 Misc. office Expense 515 Office Salaries Expense 1,800 Supplies Expense 330

Depreciation Expense 288 40,588 40,588 c) Yasunari Kawabata D. D. S. Income Statement September 30, 2012 Service Revenue $ 9,620 Expenses Office Salaries Expense1800 Supplies Expense330 Rent Expense680 Depreciation Expense288 Misc. office Expense515 Total Expenses3613 $ 6,007 Yasunari Kawabata D. D. S. Statement of Owner’s Equity September 30, 2012 Capital Sept. 1 $ 20,000 Add: net Income 6,007 26,007 Less: Withdrawal 3,000 Yasunari Capital Sept. 30 23,007 d) Yasunari Kawabata D. D. S. Balance Sheet September 30, 2012

Assets Liabilities and Owner’s Equity Cash $ 12,133 Accounts Payable 13,680 Accounts Receivable 6,950 Capital 23,007 Supplies on Hand 612 Furniture & Equipment 17,280 Accumulated Depreciation (288) Total Assets $ 36,687 Total L&OE $ 36,687 e) Yasunari Kawabata D. D. S. Post-Closing Trial Balance September 30, 2012 DebitCredit Cash 12,133 Accounts Receivable 6,950 Supplies On hand 612 Furniture & Equipment 17,280 Accumulated Depreciation 288 Accounts Payable 13,680

Capital 23,007 36,975 36,975 P3-2 a)Accounts Receivable3,500 Service Revenue3,500 Unearned Service Revenue1,400 Service Revenue1,400Supplies Expense5,400 Supplies5,400 Depreciation Expense5,000 Accumulated Depreciation5,000 Salaries Expense 1,300 Salaries payable1,300 Interest Expense150 Interest Payable150 Insurance Expense850 Prepaid Insurance850 b) Mason Advertising Agency Income Statement September 30, 2012 Revenue $ 63,500 Expenses Salaries & Wages Expense 11,300 Rent Expense 4,000 Supplies Expense 5,400 Depreciation Expense 5,000

Interest Expense 500 Insurance Expense 850 Total Expenses 27,050 Net Income $ 36,450 Mason Advertising Agency Statement of Retained Earnings September 30, 2012 Retained Earnings Sept. 1 $ 3,500 Add: net Income 36,450 Retained Earnings Sept. 30 $ 39,950 Mason Advertising Agency Balance Sheet September 30, 2012 Assets Cash $ 11,000 Accounts Receivable 23,500 supplies 3,000 Prepaid Insurance 2,500 Equipment 60,000 Accumulated Depreciation 33,000 Total Assets $ 67,000 Liabilities and Stockholder’s Equity Liabilities

Notes Payable 5,000 Accounts payable 5,000 Interest Payable 150 Unearned Revenue 5,600 Salaries & Wages Payable 1,300 Total Liabilities 17,050 Common Stock 10,000 Retained Earnings 39,950 Total Stockholder’s Equity 49,950 Total L&SE $ 67,000 c) 1. Interest payable for 3 months is 150. Therefore, interest is $50 a month and is 1% of the note. 12 x 1% = 12% annual interest 2. Salary & Wages Expense minus Salaries & Wages Payable 11,300 – 1,300 = 10,000 Total paid 12,500 – 10,000 = 2,500 Salaries Payable on 12/31/11 $2,500