E3-8 - 5. Purchased $1,600 of dental supplies. On January...

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Andy Wright, D.D.S., opened a dental practice on January 1, 2008. 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 $520. 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 $12,000.
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Unformatted text preview: 5. Purchased $1,600 of dental supplies. On January 31, determined that $400 of supplies were on hand. Instructions Prepare the adjusting entries on January 31. Date Account / Description Debit Credit 1. Jan.31 Accounts Receivable $ 875 Service Revenue $ 875 2. Jan. 31 Utilities Expense $ 520 Utilities Payable $ 520 3. Jan. 31 Depreciation Expense $ 400 Accum. Depr.-Dental Equipment $ 400 (To record depreciation.) Jan. 31 Interest Expense $ 500 Interest Payable $ 500 4. Jan. 31 Insurance Expense $ 1000 Prepaid Insurance $ 1000 5. Jan. 31 Supplies Expense $ 1200 Supplies $ 1200...
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This note was uploaded on 07/31/2011 for the course ACCT 557 taught by Professor Kahn during the Spring '10 term at Strayer.

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