ACK NEXT Meghan Lindh, D.D.S., opened a dental practice on January 1, 2017. Duri

Question

ACK NEXT Meghan Lindh, D.D.S., opened a dental practice on January 1, 2017. During the first month of operations, the folloning transactions occured. 1. Performed services for patients who had dental plan insurance. At January 31, $810 of such services were performed but not yet recorded. 2. Utility expenses incurred but not paid prior to January 31 totaled $680. 3. Purchased dental equipment on January 1 for $81,000, paying $24,000 in cash and signing a $57,000, 3-year note payable (a) The equipment depreciates $405 per month. (b) Interest is $470 per month. 4. Purchased a one-year malpractice insurance policy on January 1 for $25,800. 5. Purchased $1,600 of dental supplies. On January 31, determined that $400 of supplies were on hand Supplies, SuppliestE Expense, Ubilities Expense, and Accounts Payable. (Credit account titlies are automatically edented when the amount is entened. o nt indent manlly Debit Credit 2. Jan. 31 3. Jan. 31 of 4 an 31

Explanation / Answer

Adjusting entry :

Date account & explanation debit credit Jan 31 Account receivable 810 Service revenue 810 Jan 31 Utilties expense 680 Utilities payable 680 Jan 31 Depreciation expense 405 Accumlated depreciation 405 Jan 31 Interest expense 470 Interest payable 470 Jan 31 Insurance expense (25800/12) 2150 Prepaid insurance 2150 Jan 31 Supplies expense 1200 Supplies 1200

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