Evan Watts opened a dental practice on January 1, 2021. During the first month of operations, the

Question:

Evan Watts opened a dental practice on January 1, 2021. During the first month of operations, the following transactions occurred.

1. Watts performed services for patients totalling $2,400. These services have not yet been recorded.

2. Utility expenses incurred but not paid prior to January 31 totalled $400.

3. Purchased dental equipment on January 1 for $80,000, paying $20,000 in cash and signing a $60,000, three-year note payable. The equipment depreciates $500 per month. Interest is $600 per month.

4. Purchased a one-year malpractice insurance policy on January 1 for $12,000.

5. Purchased $2,600 of dental supplies. On January 31, determined that $900 of supplies were on hand.


Instructions

Prepare the adjusting entries on January 31.

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Related Book For  book-img-for-question

Accounting Principles Volume 1

ISBN: 978-1119502425

8th Canadian Edition

Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel, Barbara Trenholm, Valerie Warren, Lori Novak

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