E3.71/ Depreciation= 400 x 3 = 120031-Mar Depreciation Equipment Exp.1,200 Accumulated Depreciation-Equipment1,200 2/ Unearned revenue = 10,200x1/3=340031-Mar Unearned rent revenue3,400 Rent revenue3,400 3/31-Mar Interest Expense500 Interest payable500 4/ Suppiles spent = 2800-900 = 190031-Mar Supplies Expense1,900 Supplies1,900 5/ Insurance spent = 200x3=60031-Mar Insurance Expense600 Prepaid insurance600 E3.81/31-Jan A/R875 Service Revenue875 2/31-Jan Utilities Expense650 A/P650 3/1-Jan Dental equipment80,000 Cash20,000 Notes payable60,000 31-Jan Depreciation Exp.400 Accumualted Depreciation-Equipment400 31-Jan Interest Exp.500 Interest payable500 4/ Insurance per month = 24000/12 = 20001-Jan Prepaid insurance24,000 Cash24,000 31-Jan Insurance Exp.2,000 Prepaid Insurance2,000 5/ Supplies spent = 1600-400= 12001-Jan Dental Supplies1,600 Cash1,600 Q1.A/The time period assumption affects an accountant’s analysis of business transactions because everything has to be recorded according to the specific dates that services are given, payments are received, and payments are made
