barbarabright1
Nov 29, 2011, 01:32 PM
Andy Wright, DDS opened a dental practice on January 1, 2008. During the first mont 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 expense 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 moneth. Interest is $500 per month.
4. Purchased a one-ear 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.
Prepare adjusting entries on January 31, use account titles are: Accumulated Depreciation, Dental Equipment, Depreciation Expense,Service Revenue, Accounts Receivable, Insurance Expense, Interest Expense, 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 expense 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 moneth. Interest is $500 per month.
4. Purchased a one-ear 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.
Prepare adjusting entries on January 31, use account titles are: Accumulated Depreciation, Dental Equipment, Depreciation Expense,Service Revenue, Accounts Receivable, Insurance Expense, Interest Expense, Prepaid Insurance, Supplies, Supplies Expense, Utilities Expense, and Utilities Payable.