Question

Current Attempt in Progress Elizabeth Brown, D.D.S. opened a dental practice on January 1, 2020. 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, $820 of such services were performed but not yet recorded Utility expenses incurred but not paid prior to January 31 totaled $680. Purchased dental equipment on January 1 for $84,000, paying $30,000 in cash and signing a $54.000.0, 3-year note payable. The equipment depreciates $420.0 per month. Interest is $540 per month. Purchased a one-year malpractice insurance policy on January 1 for $22,080. Purchased $1,500 of dental supplies. On January 31, determined that $500 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 Utilities Payable. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.)

Answer 1

	ADJUSTINT ENTRIES AS ON JANUARY 31, 2020 IN THE BOOKS
	Date	General Journal	Debit Amount in $	Credit Amount in $
1	31-01-2020	Service Revenue	820
		To Prepaid insurance		820
		Being services provided to patints who had dental plan insurance)
2	31-01-2020	Utility expenses	680
		To Utilities payable		680
		(Being utilities expenses incurred by not paid Prior to Jan 31st)
3	31-01-2020	Depreciation expenses	420
		To Accumulated depreciation - Equipment		420
		(being the depreciation on equipment for the month of January 2020)
	31-01-2020	Interest expenses	540
		To Interest payable		540
		(Being the interest payable for the month of January on 3 years note payble for the purchase of equipment) (22080/12)
4	31-01-2020	Insurance expenses	1840
		To Prepaid insurance		1840
		(Being the insurance expenses for the month of January for malpractice insurance policy)
5	31-01-2020	Supplies expenses	1000
		To supplies		1000
		(Being the suplies expenses incured for January             ( 1500 -500)
Question 2	LEDGER OF BLOSSOM Inc. AS ON 31st March, 2020 After passing adjusting entries
		PREPAID INSURANCE A/C	Debit Amount in $	Credit Amount in $
		Prepaid insurance	2400
		Insurance Expenses		500
		Balance C/d		1900
		TOTAL	2400	2400
		SUPPLIES A/C	Debit Amount in $	Credit Amount in $
		Opening Balance	2400
		Supplies expenses		700
		Balance C/d		1700
		TOTAL	2400	2400
		Equipment A/c	Debit Amount in $	Credit Amount in $
		Opening Balance	30200
		Depreciation expenses		6000
		Balance C/d		24200
		TOTAL	30200	30200
		Un earned Service revenue	Debit Amount in $	Credit Amount in $
		Opening Balance		8600
		Services Revenue	3440
		Balance C/d	5160
		TOTAL	8600	8600
		JOURNAL ENTRIES
	Date	General Journal	Debit Amount in $	Credit Amount in $
	31-03-2020	Insurance Expenses	500
		To Prepaid insurance		500
		Being the prepared insurance experied at the rate of $500 per month included in the prepaid transfered)
	31-03-2020	Depreciation expenses	6000
		To Accumulated depreciation - Equipment		6000
		(Being the depreciation expenses at S 500 per month provided on equipment)
	31-03-2020	Supplies expenses	700
		To Supplies		700
		(being the Supplies used for the year transferred to supplies expenses )
	31-03-2020	Services Revenue	3440
		To Un earned service revenue		3440
		(Being 2/5 of Un earned service revenue transferred to service revenue on performance of service during March)