Exercise 3-8 Robin Shalit, D.D.S., opened a dental practice on January 1, 2015.
ID: 2599046 • Letter: E
Question
Exercise 3-8
Robin Shalit, D.D.S., opened a dental practice on January 1, 2015. During the first month of operations, the following transactions occurred.
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. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.)
No.
Date
Account Titles and Explanation
Debit
Credit
1. Performed services for patients who had dental plan insurance. At January 31, $894 of such services were performed but not yet recorded. 2. Utility expenses incurred but not paid prior to January 31 totaled $694. 3. Purchased dental equipment on January 1 for $85,000, paying $23,100 in cash and signing a $61,900, 3-year note payable. (a) The equipment depreciates $425 per month. (b) Interest is $619 per month. 4. Purchased a one-year malpractice insurance policy on January 1 for $24,060. 5. Purchased $1,567 of dental supplies. On January 31, determined that $438 of supplies were on hand.Explanation / Answer
1 Accounts Receivable 894 Service Revenue 894 2 Utilities Expense 694 Accounts Payable 694 3 Depreciation Expense 425 Accumulated Depreciation—Equipment 425 Interest Expense 619 Interest Payable 619 4 Insurance Expense 2005 =24060/12 Prepaid Insurance 2005 5 Supplies Expense 1129 =1567-438 Supplies 1129
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