Adjusting Entries - Greg Mabasa, D.D.S.
Not what you're looking for?
Greg Mabasa,D.D.S., opened a dental practice on January 1, 2006. 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 recorded.
2. Utility expenses incurred but not paid prior to January 31 totaled $630.
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 $21,000.
5. Purchased $1,600 of dental supplies. On January 31, determined that $600 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
For the first month of business for Greg Mabasa, D.D.S, the entries are made to record the business activity. Each entry is followed by an adequate explanation for the reader to understand how the amounts were derived.
Solution Preview
Greg Mabasa, DDS
31-Jan-06
Entry # Description Debit Credit
1 Accounts receivable 875.00
Service revenue 875.00
To accrue additional unrecorded revenue
2 Utility expense 630.00
Utilities payable 630.00
To record expense incurred but not paid as
of January 31
3 Dental ...
Purchase this Solution
Free BrainMass Quizzes
Accounting: Statement of Cash flows
This quiz tests your knowledge of the components of the statements of cash flows and the methods used to determine cash flows.
Lean your Process
This quiz will help you understand the basic concepts of Lean.
Basic Social Media Concepts
The quiz will test your knowledge on basic social media concepts.
Cost Concepts: Analyzing Costs in Managerial Accounting
This quiz gives students the opportunity to assess their knowledge of cost concepts used in managerial accounting such as opportunity costs, marginal costs, relevant costs and the benefits and relationships that derive from them.
Organizational Behavior (OB)
The organizational behavior (OB) quiz will help you better understand organizational behavior through the lens of managers including workforce diversity.