Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Meghan Lindh, D.D.S., opened a dental practice on January 1, 2017. During the first month of operations, the following transactions occurred. 1. Performed services for
Meghan Lindh, D.D.S., opened a dental practice on January 1, 2017. During the first month of operations, the following transactions occurred.
1. | Performed services for patients who had dental plan insurance. At January 31, $820 of such services were performed but not yet recorded. | |
2. | Utility expenses incurred but not paid prior to January 31 totaled $610. | |
3. | Purchased dental equipment on January 1 for $85,000, paying $27,000 in cash and signing a $58,000, 3-year note payable. (a) The equipment depreciates $425 per month. (b) Interest is $480 per month. | |
4. | Purchased a one-year malpractice insurance policy on January 1 for $25,920. | |
5. | Purchased $1,600 of dental supplies. On January 31, determined that $300 of supplies were on hand. |
Prepare the adjusting entries on January 31. Account titles are Accumulated DepreciationEquipment, Depreciation Expense, Service Revenue, Accounts Receivable, Insurance Expense, Interest Expense, Interest Payable, Prepaid Insurance, Supplies, Supplies Expense, Utilities Expense, and Accounts Payable.
No. | Date | Account Titles and Explanation | Debit | Credit |
1. | Jan. 31 | |||
2. | Jan. 31 | |||
3. | Jan. 31 | |||
4. | Jan. 31 | |||
5. | Jan. 31 | |||
6. | Jan. 31 | |||
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started