Question

Exerci 3-03 Robin Shat, D.D.Sy opened a dental practice on January 1, 2020. During the first month of operations, the following transactions occurred. 1. Performed services for patients who had dental plan insurance. At January 31, $875 of such services were performed but not yet recorded. 2. Utility expenses incurred but not paid prior to January 31 totaled $650. 3 Purchased dental equipment on January 1 for $60,000, paying $20,000 in cash and signing a $60,000, 3-year note payable. The equipment deprecates $400 per month. Interest is $500 per month 4. Purchased a one-year malpractice insurance policy on January 1 for $24,000. 5. Purchased $1,600 of dental supplies. On January 31, determined that $400 of supplies were on hand.

Answer 1

3-08) Adjusting entry

No	Date	General Journal	Debit	Credit
1	Jan 31	Account receivable	875
		Service revenue		875
2	Jan 31	Utilities expense	650
		Utilities payable		650
3	Jan 31	Depreciation expense	400
		Accumulated depreciation-equipment		400
		(To record depreciation)
		Interest expense	500
		Interest payable		500
		(To record interest)
4	Jan 31	Insurance expense (24000/12)	2000
		Prepaid insurance		2000
5	Jan 31	Supplies expense (1600-400)	1200
		Supplies		1200

2) Adjusting entry

No	Date	General Journal	Debit	Credit
1	Oct 31	Supplies expense (2500-500)	2000
		Supplies		2000
2	Oct 31	Insurance expense	100
		Prepaid insurance		100
3	Oct 31	Depreciation expense	50
		Accumulated depreciation-equipment		50
4	Oct 31	Unearned service revenue	600
		Service revenue		600
5	Oct 31	Account receivable	300
		Service revenue		300
6	Oct 31	Interest expense	95
		Interest payable		95
7	Oct 31	Salaries expense	1625
		Salaries payable		1625