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Robin Shalit, D.D.S., opened a dental practice on January 1, 2021. During the first month of operations, the following transactions occurred. The first set are

Robin Shalit, D.D.S., opened a dental practice on January 1, 2021. During the first month of operations, the following transactions occurred. The first set are ordinary transactions, which will require some adjusting at the end of the period. The second set are the adjusting journal entries.

These are ordinary transactions which were recorded during January:

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 $400 per month. Interest is $500 per month.

Purchased $1,600 of dental supplies for cash on January 1.

Purchased a 12-month malpractice insurance policy on January 1 for $24,000. Coverage begins on 1/1 and ends on 12/31/21.

These are the adjusting journal entries that will we will record as of 1/31/2021

On January 31, determined that $400 of supplies were on hand.

Recorded an interest accrual for the $60,000 note.

Accrued insurance expense for the month of January.

Determined that the dental assistant had worked the last four days of January. The next payroll, which covers the pay period beginning on January 27th will occur on February 10th. The dental assistant is paid a salary of $200 per day.

Recorded depreciation expense for January.

The January utility bill of $650 is received on 1/31. The bill is payable in full on 2/21.

Performed services for patients who had dental plan insurance. Delta Dental typically pays 45 days after the claim for service is filed by the dental office. January dental services performed on patients covered by Delta Dental total $2,550.

Required:

  • Journalize all the original January 1st entries.
  • Journalize all the 1/31 adjusting entries.
  • Use the table on the next page for your work.

Use this table for the AJEs.

Date

Account

Debit

Credit

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