Problem 3 Victoria Lee Company had the following selected data from their adjusted trial balance on June Debit Credit 6,760 550 7,870 400 250 Account Titles Owner's Capital Owner's Drawings Sales Revenue Sales Return Sales Discount Interest Revenue COGS Salaries and Wages Expense Miscellaneous Expense Supplies Expense Salaries and Wages Payable 100 4,180 1,500 200 1,100 880 Prepare closing entries at June 30, 2017 (10 points) North South University Fall 2021 ACT 201.14 M. Golam Rabbani Midterm exam Total points: 30 2 pages, 3 problems Time: 30 minutes 1. This is a confidential document, it is for your use only, and you cannot share it with anyone else. Sharing it with anyone else in any way will result in immediate failure. 2. This is an individual assignment. No cheating of any kind. 3. Late submissions will be severely penalized. 4. Course instructor reserves the right to reject any exam for any reason. Good Luck Problem 1 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, $665 of such services were performed but not yet recorded. 2. Utility expenses incurred but not paid prior to January 31 totaled $200. 3. Purchased dental equipment on January 1 for $80,000, paying $20,000 in cash and signing a $60,000, 3-year note payable. The equipment depreciates $2500 per month. Interest is $800 per month. 4. Purchased a one-year malpractice insurance policy on January 1 for $36,000. 5. Purchased $2,600 of dental supplies. On January 31, determined that $400 of supplies 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, Supplies Expense, Utilities Expense, and Utilities Payable. (10 points) Problem 2 Patel Company has an inexperienced accountant. During the first 2 weeks on the job, the accountant made the following errors in journalizing transactions. All entries were posted as made. 1. A payment on account of $1,750 to a creditor was debited to Accounts Payable $870 and credited to Cash $570. 2. The purchase of supplies on account for $260 was debited to Equipment $560 and credited to Accounts Payable $56. 3. A $500 withdrawal of cash for N. Patel's personal use was debited to Salaries and Wages Expense $200 and credited to Cash $200. Prepare the correcting entries. (10 points)