Adjusting the Accounts

Meghan Lindh, D.D.S., opened a dental practice on January 1, 2019. 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 were performed but not yet recorded.
  2. Utility expenses incurred but not paid prior to January 31 totaled $650.
  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 $24,000.
  5. Purchased $1,600 of dental supplies. On January 31, determined that $400 of supplies were on hand.


Prepare the adjusting entries on January 31, Account titles are Accumulated Depreciation-Equipment, Depreciation Expense, Service Revenue, Accounts Receivable, Insurance Expense, Interest Expense, Interest payable, Prepaid Insurance, Supplies, Supplies Expense, Utilities Expense, and Utilities Payable.


Meghan Lindh, D.D.S.
Adjusting Entries
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