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Create a balance sheet, income statement and owner equity statement for the attached scenario

1. One June 1st, Leo opened an account for his practice at your bank and deposited $20,000 of his own money.
2. Leo has dental equipment worth $23,000 in his office that was brought from his previous practice.
3. On June 1st, Leo spent $500 on furniture for his waiting room.
4. On June 2nd, Leo purchased dental supplies on account for $5,000. $1,500 worth of supplies are used during the month.
5. On June 3rd, Leo makes a $3,000 payment for 3 months of liability insurance.
6. On June 2nd, Leo paid out $1,200 in office rent for the month of June.
7. On June 15th and 30th, Leo paid a $1,500 salary to his hygienist.
8. By June 30th, Leo had received $3,540 in cash from and billed $8,380 to patients for services rendered during the first month of his practice.
9. On June 30th, Leo withdrew $300 for personal expenses.
10. On June 30th, Leo received an electric bill for $250, which he will pay in July.

Solution Preview

Income Statement

The revenue is 3,540 in cash and 8,380 on account. Total revenue 11,920

Expenses are
Dental supplies - $1,500 were used
Insurance for 1 month = 3,000/3 =1,000
Office rent - 1,200
Salary - 1,500X2=3,000
Electric Bill - 250

Income Statement
Dental Supplies............1,500
Insurance ...

Solution Summary

The solution explains how to prepare the financial statements given a set of transactions.