Question

Exercise 4-10 Splish Brothers Inc., opened an incorporated dental practice on January 1, 2022. During the first month of operations, the following transactions occurred. 1. 2. 3. Performed services for patients who had dental plan insurance. At January 31, $900 of such services was completed but not yet billed to the insurance companies. Utility expenses incurred but not paid prior to January 31 totaled $530. Purchased dental equipment on January 1 for $82,600, paying $23,200 in cash and signing a $59,400, 3-year note payable interest is paid each December 31). The equipment depreciates $580 per month. Interest is $470 per month. Purchased a 1-year malpractice insurance policy on January 1 for $24,000. Purchased $1,940 of dental supplies (recorded as increase to Supplies). On January 31, determined that $600 of supplies were on hand. 4. 5. 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 Accounts Payable. (If no entry is required, select "No Entry" for the account titles and enter o for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.)

Answer 1

Answer Adjusting Towgal Entries Adjusting journal emblies are the Pobies which segregabe income 99d expence to the relative accounting financial period Adjusting Journal Entries are passed at the ear of Accounting period. ° Adjusting journal eabies are passed in accordance of the Elccounting priociale. Of acexual concept, Accougl Gaceply tells Pxpense and income relobos to a particular period shoyld have to be recorded in such partiaku perlah

Debit ) Credit SPLISH BROTHERS INC Adjusting Toyinal Entries Date Account Titter and Explanation Ton 3 Account Receivable Alc To Secuine Reveque (To recent service revenue which is not billed] 900 goo Dr. 530 530 580 syn 3) utilities expenie Ale To Account Payable Ale (To record ubilities expense payable) 542-31 Depreciętion Expense Ale (6teacgt) . To accumulated depreciation (Guipment) (to record depreciation expeque on epipment) Jan. 3) Interest Expense Ale Or 470 To Interest Payable Ale (To record interest expense) 580 2000 Jon 31 Janugine Expiare (24000 X / 12 month To Prepaid In Syrague Alc. (To record insurance expenie) 2000 Or 1340 570-3) supplier Expepse A/c (1940 - 600) To supplies A/C (to record supplies expense) 190