contestada

Questions of
-
Al Medina, D.D.S., opened an incorporated dental practice on January 1, 2022. During the first month of operations, the following
transactions occurred.
1.
2.
3.
Performed services for patients who had dental plan insurance. At January 31, $ 760 of such services was completed but not
yet billed to the insurance companies.
Utility expenses incurred but not paid or recorded prior to January 31 totaled $ 450.
Purchased dental equipment on January 1 for $80,000, paying $ 20,000 in cash and signing a $60,000, 3-year note payable
(interest is paid each December 31). The equipment depreciates $ 400 per month. Interest is $ 500 per month.
Purchased a 1-year malpractice insurance policy on January 1 for $ 24,000.
Purchased $ 1,750 of dental supplies (recorded as increase to Supplies). On January 31, determined that $ 550 of supplies
were on hand.
4.
5.
Prepare the adjusting entries on January 31. (Credit account titles are automatically indented when the amount is entered. Do not indent
manually. If no entry is required, select "No Entry" for the account titles and enter for the amounts.)
No. Date Account Titles and Explanation
Debit
Credit
1.
Jan. 31
2.
Jan. 31
Type here to search
i
A

Respuesta :

anthougo

Preparation of Adjusting Entries on January 31 for Al Medina, D.D.S. is as follows:

Adjusting Journal Entries:

1. Debit Accounts Receivable $760

Credit Service Revenue $760

To record completed services not yet billed.

2. Debit Utility Expenses $450

Credit Utility Payable $450

To record unpaid utility expense for the month.

3. Debit Depreciation Expense $400

Credit Accumulated Depreciation $400

To record depreciation expense for the month.

3. Debit Interest Expense $500

Credit Interest Payable $500

To record interest expense for the month.

4. Debit Insurance Expense $2,000

Credit Prepaid Insurance $2,000

To record insurance expense for the month ($24,000/12).

5. Debit Supplies Expense $1,200

Credit Supplies $1,200

To record supplies expense for the month ($1,750 - $550)

Data Analysis:

Transactions at the end of January:

1. Accounts Receivable $760 Service Revenue $760

2. Utility Expenses $450 Utility Payable $450

3. Equipment $80,000 Cash $20,000 Notes Payable $60,000

3. Depreciation Expense $400 Accumulated Depreciation $400

3. Interest Expense $500 Interest Payable $500

4. Prepaid Insurance $24,000 Cash $24,000

4. Insurance Expense $2,000 Prepaid Insurance $2,000 ($24,000/12)

5. Supplies $1,750 Cash $1,750

5. Supplies Expense $1,200 Supplies $1,200 ($1,750 - $550)

Read more about recording adjusting journal entries at https://brainly.com/question/21306030