Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Lorena Manzone, D.D.S. opened a dental practice on January 1, 2022. During the first month of operations, the following transactions occurred 1 2 3. Performed

image text in transcribed
image text in transcribed
Lorena Manzone, D.D.S. opened a dental practice on January 1, 2022. During the first month of operations, the following transactions occurred 1 2 3. Performed services for patients who had dental plan insurance. At January 31, $785 of such services was completed but not yet billed to the insurance companies. Utility expenses incurred but not paid prior to January 31 totaled $650. Purchased dental equipment on January 1 for $80,000, paying $30,000 in cash and signing a $50,000, 3-year note payable (interest is paid each December 31). The equipment depreciates $400 per month. Interest is $500 per month Purchased a 1-year malpractice insurance policy on January 1 for $24,000. Purchased $1,600 of dental supplies (recorded as increase to Supplies). On January 31, determined that $400 of supplies 4. 5. were on hand Prepare the adjusting entries on January 31, Account titles are accumulated Depreciation Equipment, Depreciation Expense, Service Reverwe, Accounts Receivable, Insurance Expense. Interest Expense, Interest Payable. Prepaid Insurance Supplies, Supplies Expense, Utilities Expense, and Utilities Payable. (List all debit entries before credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually) No. Debit Credit Date Account Titles and explanation Jan. 31 Service Reverse 1. 785 Accounts Receivable 785 2. Jan. 31 Quinties Expreme 150 Uits Payable 150 3 Jan. 31 Ewoment 10.000 Depreciation Experte 400 (To record monthly depreciation) Jan. 31 Interest Expense 50.000 Interest Payable 1388 (To record interest on Notes payable 4. 5. Purchased a 1-year malpractice insurance policy on January 1 for $24.000. Purchased $1,600 of dental supplies (recorded as increase to Supplies). On January 31, determined that $400 of supplie: were on hand. Prepare the adjusting entries on January 31. Account titles are Accumulated Depreciation-Equipment, Depreciation Expense, Service Revenue, Accounts Receivable, Insurance Expense, Interest Expense, Interest Payable, Prepaid Insurance, Supplies, Supp Expense, Utilities Expense, and Utilities Payable. (List all debit entries before credit entries. Credit account titles are automatically inden when the amount is entered. Do not indent manually.) No. Date Account Titles and Explanation Debit Credit 1. Jan. 31 Service Revenue 795 Accounts Receivable 785 2. Jan. 31 Utilities Expense 150 Utilities Payable 150 3. Jan. 31 Equipment 80,000 Depreciation Expense 400 (To record monthly depreciation.) Interest Expense Jan. 31 50,000 Interest Payable 1388 (To record interest on Notes payable.) 4. Jan. 31 24.000 Insurance Expense 24000 Prepaid Insurance 5. 1.200 Jan. 31 Supplies Expense 1.200 Supplies

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Horngrens Accounting The Financial Chapters

Authors: Tracie Miller Nobles, Brenda Mattison

13th Edition

0136162185, 9780136162186

More Books

Students also viewed these Accounting questions

Question

What is the difference between the body and the mind?

Answered: 1 week ago

Question

What are the role of supervisors ?

Answered: 1 week ago

Question

Explain how to reward individual and team performance.

Answered: 1 week ago