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Course: ACCT$101$ Foundations of Accounting

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$4$ Tutorial Questions

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Question $3$: Con James commenced a dental practice on I January $2023.$ During the first month of operations the following transactions occurred:

$($a$)$ Performed services for patients and, at $31$ January, $$1500$ was earned for these services but not yet billed to the patients.

$($b$)$ Electricity expense incurred and not paid or recorded prior to $31$ January, $$1040.$

$($c$)$ Purchased dental equipment on I January $2023$ for $$160000,$ paying $$40000$ in cash and signing a $$120000$ interest$-$bearing note payable. $($Interest is payable on $31$ December $2023.)$ The equipment depreciates at $$400$ per month and interest on the note is $$500$ per month.

$($d$)$ Purchased a I$-$year insurance policy on I January $2023$ for $$24000.$

$($e$)$ Purchased $$3200$ of dental supplies $($recorded as an asset$).$ On $31$ January, $$700$ worth of supplies was still on hand.

Required

Prepare the adjusting entries on $31$ January $2023.$ Use these account names: Accumulated depreciation$-$dental equipment, Depreciation expense, Service revenue, Accounts receivable, Interest expense, Insurance expense, Salaries expense, Interest payable, Prepaid insurance and Salaries payable.

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Question $4$: Solo Ltd began operations on I June $2023.$ The trial balance at $30$ June is as follows.