Adjusting Entries
Not what you're looking for?
Karen Tong, D.D.S., opened a dental practice on January 1, 2002. During the first month of operations the following transactions occurred.
1. Performed services for patients who had dental plan insurance. At January 31, $875 of such
Services was earned but not yet billed to the insurance companies.
2. Utility expenses incurred but not paid prior to January 31 totaled $520.
3. Purchased dental equipment on January 1, for $80,000, paying $20,000 in cash and signing
a $60,000, 3-year note payable. The equipment depreciates $400 per month. Interest is
$500 per month.
4. Purchased a one-year malpractice insurance policy on January 1 for $12,000.
5. Purchased $1,600 of dental supplies. On January 31, determined that $700 of supplies were
On hand.
INSTRUCTIONS
Prepare the adjusting entries on January 31. Account titles are: Accumulated Depreciation-Dental
Equipment, Depreciation Expense, Service Revenue, Accounts Receivable, Insurance Expense,
Interest Expense, Interest Payable, Prepaid Insurance, Supplies, Supplies Expense, Utilities
Expense, and Utilities Payable.
Purchase this Solution
Solution Summary
The solution explains how the prepare adjusting journal entries.
Purchase this Solution
Free BrainMass Quizzes
Income Streams
In our ever changing world, developing secondary income streams is becoming more important. This quiz provides a brief overview of income sources.
Business Ethics Awareness Strategy
This quiz is designed to assess your current ability for determining the characteristics of ethical behavior. It is essential that leaders, managers, and employees are able to distinguish between positive and negative ethical behavior. The quicker you assess a person's ethical tendency, the awareness empowers you to develop a strategy on how to interact with them.
Team Development Strategies
This quiz will assess your knowledge of team-building processes, learning styles, and leadership methods. Team development is essential to creating and maintaining high performing teams.
Motivation
This tests some key elements of major motivation theories.
Learning Lean
This quiz will help you understand the basic concepts of Lean.