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Jim Haught, D.D.S., opened an incorporated dental practice on January 1, 2014. During the first month of operations, the following transactions occurred. 1. Performed services
Jim Haught, D.D.S., opened an incorporated dental practice on January 1, 2014. During the first month of operations, the following transactions occurred.
1. | Performed services for patients who had dental plan insurance. At January 31, $940 of such services was completed but not yet billed to the insurance companies. | |
2. | Utility expenses incurred but not paid prior to January 31 totaled $530. | |
3. | Purchased dental equipment on January 1 for $86,150, paying $22,500 in cash and signing a $63,650, 3-year note payable (interest is paid each December 31). The equipment depreciates $420 per month. Interest is $680 per month. | |
4. | Purchased a 1-year malpractice insurance policy on January 1 for $12,000. | |
5. | Purchased $1,930 of dental supplies (recorded as increase to Supplies). On January 31, determined that $530 of supplies were on hand. |
Prepare the adjusting entries on January 31
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