Question

sandra robison DDS opened a dental practice on january 1 2020 during the firts month of operation trasaction occured.

x WileyPLUS x + .wileyplus.com/edugen/Iti/main.uni sroom by oo w Dogwood Elementa w Library Glogs - Dog w Databases and Res D New Tab Student and Parent CALCULATOR PRINTER VERSION BACK E T Exercise 3-06 Sandra Robinson, D.D.S., opened a 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, $784 of such services was performed but not yet billed to the insurance companies. 2. Utility expenses incurred but not paid prior to January 31 totaled $477 3. Purchased dental equipment on January 1 for $72,000, paying $22,000 in cash and signing a $50,000, 3-year note payable. (a) The equipment depreciates $361 per month (b) Interest is $550 per month 4. Purchased a one-year malpractice insurance policy on January 1 for $13,000 5. Purchased 51,493 of dental supplies. On January 31, determined that $470 of supplies were on hand, Prepare the adjusting entries on January 31. Account Uties are Accumulated Depreciation Equipment, Depreciation Expense, Service Revenue, Accounts Receivable, Insurance Expense, Interest Expense, Interest Payable, Prepaid Insurance, Supplies, Supplies Expense, Utilities Expenses, and Accounts Payable. (Credit account times are automatically indeed when amount is entered. Do not indent manually. If no entry is required, select " entry for the accountries and enter for the amounts.) Debit Credit No. Account Titles and Explanation

Answer 1

Answer :-

Adjusting entries on January 31 are as follows :-

No.	Account Titles and Explanation	Debit	Credit
1)	Account receivable A/c Dr.	$784
	To Service Revenue A/c		$784
	(To record Performed services but till Jan. 31, $784 of such services not yet billed to the insurance companies.)
2)	Utilities Expense A/c Dr.	$477
	To Account payable A/c		$477
	(To record Utilities expenses incurred but not paid)
3)a)	Depreciation Expense A/c Dr.	$361
	To Accumulated Depreciation A/c		$361
	(To record equipment depreciation every month)
3)b)	Interest expense A/c Dr.	$550
	To Interest Payable A/c		$550
	(To record interest paid every month)
4)	Insurance expense A/c Dr. ($13,080/12)	$1,090
	To Prepaid Insurance A/c		$1,090
	(To record Insurance expenses of January month)
	Note :- Since insurance policy is purchased for one year, that a reason to find out January month expenses we dividend it by 12)
5)	Supplies Expense A/c Dr. ($1,493 - $470)	$1,023
	To supplies A/c		$1,023
	(To record dental supplies expenses for January month)