Question

Oriole Company, opened an incorporated dental practice on January 1, 2022. During the first month of operations, the following transactions occurred.

1.		Performed services for patients who had dental plan insurance. At January 31, $878 of such services were completed but not yet billed to the insurance companies.
2.		Utility expenses incurred but not paid prior to January 31 totaled $522.
3.		Purchased dental equipment on January 1 for $92,800, paying $23,200 in cash and signing a $69,600, 3-year note payable (interest is paid each December 31). The equipment depreciates $464 per month. Interest is $580 per month.
4.		Purchased a 1-year malpractice insurance policy on January 1 for $27,840.
5.		Purchased $2,030 of dental supplies (recorded as increase to Supplies). On January 31, determined that $638 of supplies were on hand.

Prepare adjustments on January 31 and record them in the tabular summary that follows. (If a transaction results in a decrease in Assets, Liabilities or Stockholders' Equity, place a negative sign (or parentheses) in front of the amount entered for the particular Asset, Liability or Equity item that was reduced.)

Assets Accts. Rec. Prepd. Insur. Supplies + Equip. 1. 2. 3a. 3b. 4. 5.

Answer 1

Adjusting entric Date Dr ($) No Amounts and explanation Accounts receivable Revenue Jau 31 878 1 878 522 Jaual 2 utilities Expenses Account payable 522 3 Jan 31 464 Depreciation expense Accumulated depn- equipment Cto reord depreciation) 464 580 Interest expuse Inthest payable (to reword interest expenses 580

Liabilities Assets et Supplies & Prept Equip / Alcoept Alepaja of Int & com Equity Receivable Rew Stock 2320 Div Eup 1392 1 878 878 2 522 (522) 13 a 3 1464 580 3b (464) (580) (2320) |(1392) 19 (2320) on 1(1392) Insurauu expune (37,840/12) 2320 Prepaid Insurance e bel (8898 - 0E028) runded sondching sandang 878 5 80 (5278) 522 |(1392) |(2320) 1464 878 Assets (2834) Liab + Equity (2834) Jan 31 Jau 31 h 5

Assets Liabilities ut Supplies & Prep & Equip T A/C dept Alpaya of Int & com Pay Equity Receivably frei Stock Eup 1 878 878 2. 522 (522) 13a 1464 3b 580 464) (580) (2320) (1392) 9 |(2320) un (1392) 580 878 1(5278) 522 1464 |(1392) |(2320) 878 supplies Assets Liab + Equity (2834) (2834)