Andy Wright, D.D.S., opened a dental practice on January 1, 2008. During the first month of operations the following transactions occurred.

Question

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

Answer 1

E3-8

Answer 2

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.