ACC 2021 Comprehensive Problem - J.A Dentist, Inc.

ACC 2021 Comprehensive Problem (60 Points)

This project is a review of the accounting cycle that has been covered during class. Prepare
all information in a professional manner and show details as needed. You should complete this
on the pages included. Read the entire project and review all information prior to starting.

On January 2, 2010, Jerry Andrews, a dentist, opened a dental office. The following transactions
were completed during the first month of operations.

Jan 2	Jerry invested $30,000 cash and $13,200 worth of dental equipment in the business
	in exchange for common stock in a new corporation called J.A Dentist, Inc.

Jan 3	Paid four months rent of $2,000.

Jan 4	Purchases $1,000 of dental supplies and paid cash.

Jan 5	Paid insurance premiums of $3,600 for a 1-year insurance policy.

Jan 6	Earned and collected dental fees of $14,600 in cash during week.

Jan 9	Paid secretary a salary of $1,200.

Jan 10	Purchased $300 of dental supplies on account.

Jan 11	Bought an automobile for business use. It cost $13,000. Jerry paid $3,000 cash
	and signed a note for the balance.

Jan 13	Received a $240 telephone bill that will be paid later in the month.

Jan 13	Billed customers $6,000 for dental fees earned during the week

Jan 16	Received a $150 electric Bill (Utility Expense) that will be paid later in the month.

Jan 18	Paid $300 for dental supplies purchased on Jan 10.

Jan 20	Earned and collected dental fees of $4,500 in cash during the week.

Jan 23	Paid $450 for advertising in a local newspaper.

Jan 23	Received a $75 water bill (Utility Expense)

Jan 25	Received $2,500 from customers on account.

Jan 27	Paid a dividend of $3,500 to Jerry Andrews, the sole stockholder.

Jan 30	Paid the utility bills (water, telephone, electric).

Jan 30	Billed customers $2,000 for dental fees earned during the week.

Jan 31	Received $1,500 from customers on account.

The chart of accounts for J.A. Dentist, Inc. contains the following accounts

	Assets		Revenue
	Cash		Service Revenue
	Accounts Receivable
	Dental Supplies
	Prepaid Insurance		Expenses
	Prepaid Rent		Advertising Expense
	Dental Equipment		Insurance Expense
	Automobile		Rent Expense
			Salary Expense
	Liabilities		Supplies Expense
	Accounts Payable		Telephone Expense
	Notes Payable		Utility Expense
	Salaries Payable

	Stockholders Equity		Income Summary
	Common Stock
	Retained Earnings
	Dividends

Required:

1.	Journalize the January 2010 transactions on the attached journal paper. Omit the journal
	entry descriptions.
2.	Post to ledger accounts via attached T account sheet.
3.	Prepare a trial balance for January 2010 on attached sheet
4.	Record the following adjusting entries on the attached journal paper, then post the adjusting
	entries to the existing T accounts.
	a.	Dental supplies on hand at the end of the month amount to $350.
	b.	Make the adjusting entry for the insurance premiums expired.
	c.	Accrued $840 for salary earned that will be paid in February.
	d.	Make the adjusting entry for rent expense.
	e.	Ignore depreciation for the month of January - no adjustment needed.
5.	Prepare an adjusted trial balance for January 31, 2010 on the sheet attached
6.	Prepare the income statement, statement of retained earnings and classified balance
	sheet as of January 31, 2010. Prepare the statements on the attached sheets (pages 10
	and 11).
7.	Since January 31 2010 is the end of the fiscal year, record the closing entries on the
	journal paper and post the closing entries to the existing T accounts.
8.	Prepare a post closing trial balance as of January 31, 2010 on the attached sheet.




Check figures: Trial Balance $80,300; Total Assets $72,935; Net Income: $22,395

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