Asked by Ben
Andy Wright, D.D.S., opened a dental practice on January 1, 2008. During the first month of operations the following transactions occurred.
Performed services for patients who had dental plan insurance. At January 31, $875 of such services was earned but not yet recorded.
Utility expenses incurred but not paid prior to January 31 totaled $520.
Purchased dental equipment on January 1 for $80,000, paying $20,000 in cash and signing a $60,000, 3-year note payable. The equipment depreciates $400 per month. Interest is $500 per month.
Purchased a one-year malpractice insurance policy on January 1 for $12,000.
Purchased $1,600 of dental supplies. On January 31, determined that $400 of supplies were on hand.
Instructions
Prepare the adjusting entries on January 31.
Date Description/Account Debit Credit
1. Jan.31 Accounts Receivable 875
Service Revenue 875
2. Jan. 31 Utilities Expense 520
Utilities Payable 520
3. Jan. 31 Depreciation Expense 400
Accum. Deprec.-Dental Equipment 400
(To record depreciation.)
Jan. 31 Interest Expense 500
Interest Payable 500
4. Jan. 31 Insurance Expense
Prepaid Insurance
5. Jan. 31 Supplies Expense
Supplies
How do i do this stuff
Performed services for patients who had dental plan insurance. At January 31, $875 of such services was earned but not yet recorded.
Utility expenses incurred but not paid prior to January 31 totaled $520.
Purchased dental equipment on January 1 for $80,000, paying $20,000 in cash and signing a $60,000, 3-year note payable. The equipment depreciates $400 per month. Interest is $500 per month.
Purchased a one-year malpractice insurance policy on January 1 for $12,000.
Purchased $1,600 of dental supplies. On January 31, determined that $400 of supplies were on hand.
Instructions
Prepare the adjusting entries on January 31.
Date Description/Account Debit Credit
1. Jan.31 Accounts Receivable 875
Service Revenue 875
2. Jan. 31 Utilities Expense 520
Utilities Payable 520
3. Jan. 31 Depreciation Expense 400
Accum. Deprec.-Dental Equipment 400
(To record depreciation.)
Jan. 31 Interest Expense 500
Interest Payable 500
4. Jan. 31 Insurance Expense
Prepaid Insurance
5. Jan. 31 Supplies Expense
Supplies
How do i do this stuff
Answers
Answered by
DDS
E3-8
Answered by
Sulaiman
Andy Wright, D.D.S., opened a dental practice on January 1, 2010. During the first month of operations the following transactions occurred.
1. Performed services for patients who had dental plan insurance. At January 31, $875 of such services was earned but not yet recorded.
2. Utility expenses incurred but not paid prior to January 31 totaled $520.
3. Purchased dental equipment on January 1 for $80,000, paying $20,000 in cash and signing a $60,000, 3-year note payable. The equipment depreciates $400 per month. Interest is $500 per month.
4. Purchased a one-year malpractice insurance policy on January 1 for $12,000.
5. Purchased $1,600 of dental supplies. On January 31, determined that $400 of supplies were on hand.
Instructions
Prepare the adjusting entries on January 31. Account titles are: Accumulated Depreciation—Dental Equipment, Depreciation Expense, Service Revenue, Accounts Receivable, Insurance Expense, Interest Expense, Interest Payable, Prepaid Insurance, Supplies, Supplies Expense, Utilities Expense, and Utilities Payable.
1. Performed services for patients who had dental plan insurance. At January 31, $875 of such services was earned but not yet recorded.
2. Utility expenses incurred but not paid prior to January 31 totaled $520.
3. Purchased dental equipment on January 1 for $80,000, paying $20,000 in cash and signing a $60,000, 3-year note payable. The equipment depreciates $400 per month. Interest is $500 per month.
4. Purchased a one-year malpractice insurance policy on January 1 for $12,000.
5. Purchased $1,600 of dental supplies. On January 31, determined that $400 of supplies were on hand.
Instructions
Prepare the adjusting entries on January 31. Account titles are: Accumulated Depreciation—Dental Equipment, Depreciation Expense, Service Revenue, Accounts Receivable, Insurance Expense, Interest Expense, Interest Payable, Prepaid Insurance, Supplies, Supplies Expense, Utilities Expense, and Utilities Payable.
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