Jim Haught, D.D.S., opened an incorporated dental practice on January 1, 2014. During the first month of operations, the following transactions occurred.
|
1.
|
|
Performed services for patients who had dental plan insurance. At January 31, $780 of such services was completed but not yet billed to the insurance companies.
|
|
2.
|
|
Utility expenses incurred but not paid prior to January 31 totaled $540.
|
|
3.
|
|
Purchased dental equipment on January 1 for $87,590, paying $29,890 in cash and signing a $57,700, 3-year note payable (interest is paid each December 31). The equipment depreciates $590 per month. Interest is $620 per month.
|
|
4.
|
|
Purchased a 1-year malpractice insurance policy on January 1 for $48,000.
|
|
5.
|
|
Purchased $1,910 of dental supplies (recorded as increase to Supplies). On January 31, determined that $610 of supplies were on hand.
|
Prepare the adjusting entries on January 31. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.)
|
No.
|
Account Titles and Explanation
|
Debit
|
Credit
|
|
1.
|
|
|
|
|
|
|
|
|
|
2.
|
|
|
|
|
|
|
|
|
|
3.
|
|
|
|
|
|
|
|
|
|
|
(To record depreciation expense)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(To record interest expense)
|
|
|
|
4.
|
|
|
|
|
|
|
|
|
|
5.
|
|
|
|
|
|
|
|
|