PART 1

Part I. Adjusting Entries (20 points) Longheach opened an incorporated dental practice on January 1, 2020. During the first month of operations the following transactions occurred: 1. Performed services for patients who had dental plan insurance. At January 31, 53,000 of such service was completed but not yet billed to the insurance companies 2. Utility expenses incurred but not paid prior to January 31 totaled $2,850, 3. Purchased dental equipment on January 1 for $240,000, paying $60,000 in cash and signing a $180,000, 3-year note payable (Interest is paid each December 31). The equipment depreciates $1,200 per month. Interest is $1,500 per month 4. Purchased a 1-year malpractice insurance policy on January 1 for $54,000. 5. Purchased $5,250 of dental supplies (recorded as increase to Supplies). On January 31 determined that $1,650 of supplies were on hand. Instructions: Prepare the adjusting entries on January 31. Account titles are Acumulated Depreciation - Equipment Depreciation Expense, Service Ravenue, Accounts Receivable. Insurance Expense, Interest Expense. Interest Payable. Prepaid Irtsurance, Supplier Supplies Expanse, Unilities Experts and Accounts Peryable. Part II - Journal Entries (20 points) Goldenrod Warehouse distributed hard back books to retail stores and extends credit terms of 2/10, n/30 to all of its customers. During the month of June the following merchandising transactions occurred. June 1 Purchase books on account for $1.920 (including freight) from Barum Publisher, term 2/10,n/30. 3 Sold books on account to the Flint Hills bookstore for $2,400. The cost of the merchandise sold was $1.440. Reriyod ST20 credit for books retumed to Barum Publisher