Question

Margaret Moore, D.D.S., 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, $800 of such services was performed but not yet billed to the insurance companies.
2.		Utility expenses incurred but not paid prior to January 31 totaled $498.
3.		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.
4.		Purchased a one-year malpractice insurance policy on January 1 for $10,920.
5.		Purchased $1,665 of dental supplies. On January 31, determined that $520 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 Expenses, and Accounts Payable. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts.)

No.	Account Titles and Explanation	Debit	Credit
1.	enter an account title to record the first transaction	enter a debit amount	enter a credit amount
	enter an account title to record the first transaction	enter a debit amount	enter a credit amount
2.	enter an account title to record the second transaction	enter a debit amount	enter a credit amount
	enter an account title to record the second transaction	enter a debit amount	enter a credit amount
3. (a)	enter an account title to record the third transaction under point A	enter a debit amount	enter a credit amount
	enter an account title to record the third transaction under point A	enter a debit amount	enter a credit amount
3. (b)	enter an account title to record the third transaction under point B	enter a debit amount	enter a credit amount
	enter an account title to record the third transaction under point B	enter a debit amount	enter a credit amount
4.	enter an account title to record the fourth transaction	enter a debit amount	enter a credit amount
	enter an account title to record the fourth transaction	enter a debit amount	enter a credit amount
5.	enter an account title to record the fifth transaction	enter a debit amount	enter a credit amount
	enter an account title to record the fifth transaction

ReplyForward

Answer 1

No.	Account Titles and Explanation	Debit	Credit
1.	Accounts receivable	$800
	Service revenue		$800
	( To record service revenue)
2.	Utility expense	$498
	Accounts payable		$498
	( To record utility expense)
3 (a)	Depreciation expense	$364
	Accumulated depreciation- Equipment		$364
	( To record depreciation expense)
3 (b)	Interest expense	$520
	Interest payable		$520
	( To record interest expense)
4	Insurance expense	$910
	Prepaid insurance		$910
	( To record insurance expense)
5	Supplies expense	$1,145
	Supplies		$1,145
	( To record supplies expense)

4.

Insurance expense for 1 year = $10,920

Insurance expense for 1 month = 10,920 x 1/12

= $910

5.

Supplies expense = Supplies purchased - Ending supplies

= 1,665-520

= $1,145

Kindly comment if you need further assistance. Thanks‼!