Question

1. 2. 3 Performed services for patients who had dental plan insurance. At January 31, $800 of such services was performed but not yet billed to the insurance companies. Utility expenses incurred but not paid prior to January 31 totaled $498. Purchased dental equipment on January 1 for $75,000, paying $21,000 in cash and signing a $54,000, 3-year note payable. (a) The equipment depreciates $364 per month. (b) Interest is $520 per month. Purchased a one-year malpractice insurance policy on January 1 for $10,920. Purchased $1,665 of dental supplies. On January 31, determined that $520 of supplies were on hand. 4. 5.

Answer 1

Preparation of Adjusting Entries for the Month Ended January 31: Journal Entries Date Account Title and Explaination Post. Debit $ Credit $ Ref. $ 800.00 Jan. 31 Accounts Receivable Service Revenue (To record adjusting entry for unbilled Services) $ 800.00 $ 498.00 $ 498.00 Jan.31 Utilities Expense Utilities Payable (To record adjusting entry for accrued Utilities expense)

S 364.00 $ 364.00 Jan. 31 Depreciation Expense Accumulated Depreciation - Equipment (To record adjusting entry for Depreciation Expense) $ 520.00 $ 520.00 Jan.31 Interest Expense Interest Payable (To record adjusting entry for accrued Interest) Jan.31 Insurance Expense ($10920/12) Prepaid Insurance (To record adjusting entry for expired portion of Prepaid Insurance) S 910.00 $ 910.00 $ 1,145.00 $ 1,145.00 Jan.31 Supplies Expense ($1665-$520) Supplies (To record adjusting entry for consumption of Supplies)