Margaret Moore, DDS, opened a dental practice on January 1, 2020. During the first month of operations,
Question:
Margaret Moore, DDS, opened a dental practice on January 1, 2020. During the first month of operations, the following transactions occurred.
1. | Services performed for patients who had dental plan insurance. As of January 31, $800 of those services have been performed but insurance companies have not yet been billed. | |
2. | Utility expenses incurred but not paid by January 31 totaled $498. | |
3. | Purchased dental equipment on January 1 for $75,000, paid $21,000 in cash, and signed a note payable for $54,000 over 3 years. (a) The equipment depreciates $364 per month. (b) Interest is $520 per month. | |
4. | He purchased a one-year malpractice insurance policy on January 1 for $10,920. | |
5. | Purchased $1,665 of dental supplies. On January 31, she determined that $520 worth of supplies were available. |
Required:
Prepare the adjusting entries on January 31. Account titles are Accumulated Depreciation: Equipment, Depreciation Expense, Utility Income, Accounts Receivable, Insurance Expense, Interest Expense, Interest Payable, Prepaid Insurance, Supplies, Utility Expense, Utility Expense and accounts payable. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for account titles and enter 0 for amounts.)
No. | Account titles and explanation | Debit | Credit |
---|---|---|---|
1. | enter an account title to record the first transaction | enter a debit amount | enter a credit amount |
enter an account title to record the first transaction | enter a debit amount | enter a credit amount | |
2. | enter an account title to record the second transaction | enter a debit amount | enter a credit amount |
enter an account title to record the second transaction | enter a debit amount | enter a credit amount | |
3. (a) | enter an account title to record the third transaction at point A | enter a debit amount | enter a credit amount |
enter an account title to record the third transaction at point A | enter a debit amount | enter a credit amount | |
3. (b) | enter an account title to record the third transaction at point B | enter a debit amount | enter a credit amount |
enter an account title to record the third transaction at point B | enter a debit amount | enter a credit amount | |
4. | enter an account title to record the fourth transaction | enter a debit amount | enter a credit amount |
enter an account title to record the fourth transaction | enter a debit amount | enter a credit amount | |
5. | enter an account title to record the fifth transaction | enter a debit amount | enter a credit amount |
enter an account title to record the fifth transaction |
Intermediate Accounting
ISBN: 978-1118147290
15th edition
Authors: Donald E. Kieso, Jerry J. Weygandt, and Terry D. Warfield