1(TCO B) Adjusting entries: Minnie Smile, D.D.S. opened a dental practice on January 1, 201X. During the first month of operations the following transactions occurred: performed services for patients who had dental plan insurance. At January 31, $1,000 of such services was earned but not yet billed to the insurance companies. Salaries were incurred totaling $800 but not paid at month-end. Supplies totaling $600 were purchased on account. Prepare the adjusting entries on January 31. Omit explanations. For each journal entry write DR for debit and CR for credit

2(TCO B) Adjusting entries: Wizard Industries purchased $12,000 of merchandise on February 1, 2010, subject to a trade discount of 10% and with credit terms of 3/15/, n/60. It returned $3,000 (gross price before trade or cash discount) on February 4.The invoice was paid on February 13.Assuming that Wizard uses the periodic method for recoding merchandise transactions, record the purchase, return, and payment using the gross method.For each journal entry write DR for debit and CR for credit.

3 (TCO C)Presented below is information related to Tidal Wave Company.

Retained earnings, December 31, 20X2

$ 2,350,000

Sales

2,600,000

Selling and administrative expenses

240,000

Earthquake loss (pre-tax) on plant (extraordinary item)

250,000

Cash dividends declared on common stock

53,600

Cost of goods sold

1,000,000

Gain resulting from computation erroron depreciation charge in 2009 (pre-tax)

520,000

Other revenue

80,000

Other expenses

50,000

Instructions: Prepare in good form a multiple-step income statement for the year 20X2. Assume a 30% tax rate and that 100,000 shares of common stock were outstanding during the year.

4. (TCO D) The following balance sheet was prepared by the bookkeeper for King Company as of December 31, 201X. King Company Balance Sheet as of December 31, 201X is as follows. Cash

$ 80,000

Accounts payable

$ 75,000

Accounts receivable (net)

52,200

Long-term liabilities

100,000

Inventories

57,000

Stockholders' equity

218,500

Investments

76,300

Equipment (net)

96,000

Patents

32,000

$393,500

$393,500

The following additional information is provided.

(1) Cash includes the cash surrender value of a life insurance policy $9,400 and a bank overdraft of $2,500 has been deducted.

(2) The net accounts receivable balance includes

(a) accounts receivable debit balances $60,000;

(b) accounts receivable credit balances $4,000; and

(c) allowance for doubtful accounts $3,800.

(3) Inventories do not include goods costing $3,000 shipped out on consignment. Receivables of $3,000 were recorded on these goods.

(4) Investments include investments in common stock, trading $24,000, available-for-sale $48,300, and franchises $4,000.

(5) Equipment costing $5,000 with accumulated depreciation $4,000 is no longer used and is held for sale. Accumulated depreciation on the other equipment is $40,000.

Instructions:

Prepare balance sheet in good form (stockholders' equity details can be omitted).