Hello,

I am doing Adjusting Entries in my accounting course, and am unsure about one part of a question.

"John Doe opened a new dental practice on January 1, 2004, prepare adjusting entries as of January 31."

Here is the question I am unsure about:

Purchased dental equipment on January 1 for $80,000.00, paying $20,000.00 in cash and signing a $60,000.00 3 year note payable (interest is paid each December 31). The equipment depreciates $400.00 per month, Interest is $500.00 per month.

The available accounts are as follows:

Accumulated Depreciation, Dental Equipment, Depreciation Expense, Service Revenue, A/R, Insurance Expense, Interest Expense, Interest Payable, Prepaid Insurance, Supplies, Supplies Expense, Utilities Expense, and Utilities Payable.

Any advise on this would be greatly appreciated, as since the interest isn't paid until December 1, and the equipment was bought on June 1, I'm not sure how the interest is to be calculated/adjusted for this entry.

For the equipment depreciation though, would the adjusting entry be to

DR depreciation expense:400
CR accumulated depreciation 400
(in order to properly record depreciation?)

Hi, I really need help. Can someone explain some questions to me?

A check drawn by a depositor in payment of a voucher for $725 was recorded in the journal as $257. What entry is required in the depositor's accounts?