Gene Hoffman, D.D.S., opened an incorporated dental practice on January 1, (SO 4, 5) 2007. During the
Question:
Gene Hoffman, D.D.S., opened an incorporated dental practice on January 1,
(SO 4, 5) 2007. During the first month of operations the following transactions occurred: 1. Performed services for patients who had dental plan insurance. At January 31, $680 of such services was earned but not yet billed to the insurance companies. 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 (Interest is paid each December 31). The equipment depreciates $400 per month. Interest is $500 per month. 4. Purchased a 1-year malpractice insurance policy on January 1 for $18,000. 5. Purchased $1,750 of dental supplies. On January 31 determined that $350 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.
Step by Step Answer:
Financial Accounting Tools For Business Decision Making
ISBN: 9780471730514
4th Edition
Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso