A dentist opens a dental practice by depositing $10,000 into a bank account in the business name The dental business borrows $100,000 from the bank The dentist pays for malpractice insurance for the month, $2,000 Purchases for cash dental equipment, including X-ray machine, chair, etc. $60,000 The dentist pays for a billboard to advertise his services for one month, $500 The dentist performs dental services for the first half of the month and receives $8,000 for services January 1 January 2 January 3 January 4 January 20 January 21 rendered January 29 January 31 Pays the dental hygienist $2500 Bills patients for services rendered that have not been paid $5,000 Date Account Debit Credit 1/1/16 Cash 10000 Сapital 10000 Chart of Accounts: 1/2/16 Cash Accounts Receivable 1/3/16 Equipment Notes Payable 1/4/06 Сapital Fees Earned 1/20/16 Insurance Expense Advertising Expense 1/21/16 Salaries Expense 1/29/16 1/31/16 1. What is the net income for January? 2. How much do patients owe the dentist as of January 31?
A dentist opens a dental practice by depositing $10,000 into a bank account in the business name The dental business borrows $100,000 from the bank The dentist pays for malpractice insurance for the month, $2,000 Purchases for cash dental equipment, including X-ray machine, chair, etc. $60,000 The dentist pays for a billboard to advertise his services for one month, $500 The dentist performs dental services for the first half of the month and receives $8,000 for services January 1 January 2 January 3 January 4 January 20 January 21 rendered January 29 January 31 Pays the dental hygienist $2500 Bills patients for services rendered that have not been paid $5,000 Date Account Debit Credit 1/1/16 Cash 10000 Сapital 10000 Chart of Accounts: 1/2/16 Cash Accounts Receivable 1/3/16 Equipment Notes Payable 1/4/06 Сapital Fees Earned 1/20/16 Insurance Expense Advertising Expense 1/21/16 Salaries Expense 1/29/16 1/31/16 1. What is the net income for January? 2. How much do patients owe the dentist as of January 31?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![### Journal Entry Examples for Dental Practice - January Transactions
#### Transaction Table:
**January 1**
A dentist opens a dental practice by depositing $10,000 into a bank account in the business name.
**January 2**
The dental business borrows $100,000 from the bank.
**January 3**
The dentist pays for malpractice insurance for the month, $2,000.
**January 4**
Purchases for cash dental equipment, including X-ray machine, chair, etc. $60,000.
**January 20**
The dentist pays for a billboard to advertise his services for one month, $500.
**January 21**
The dentist performs dental services for the first half of the month and receives $8,000 for services rendered.
**January 29**
Pays the dental hygienist $2,500.
**January 31**
Bills patients for services rendered that have not been paid $5,000.
#### Journal Entries Spreadsheet:
| Date | Account | Debit | Credit |
|------------|--------------------------|--------|--------|
| **1/1/16** | Cash | 10,000 | |
| | Capital | | 10,000 |
| **1/2/16** | | | |
| **1/3/16** | | | |
| **1/4/06** | | | |
| **1/20/16**| | | |
| **1/21/16**| | | |
| **1/29/16**| | | |
| **1/31/16**| | | |
#### Chart of Accounts:
- **Cash**
- **Accounts Receivable**
- **Equipment**
- **Notes Payable**
- **Capital**
- **Fees Earned**
- **Insurance Expense**
- **Advertising Expense**
- **Salaries Expense**
#### Additional Queries:
1. **What is the net income for January?**
2. **How much do patients owe the dentist as of January 31?**
This example illustrates how to record the financial activities of a dental practice. Keeping such detailed records helps track the financial health of the practice and ensures accurate reporting for taxation and business analysis purposes.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F339d35c2-7d78-4a99-8b50-4c3e34c63697%2Ff72e155d-cdd0-4647-b252-d569343dd503%2Fg04tuig.png&w=3840&q=75)
Transcribed Image Text:### Journal Entry Examples for Dental Practice - January Transactions
#### Transaction Table:
**January 1**
A dentist opens a dental practice by depositing $10,000 into a bank account in the business name.
**January 2**
The dental business borrows $100,000 from the bank.
**January 3**
The dentist pays for malpractice insurance for the month, $2,000.
**January 4**
Purchases for cash dental equipment, including X-ray machine, chair, etc. $60,000.
**January 20**
The dentist pays for a billboard to advertise his services for one month, $500.
**January 21**
The dentist performs dental services for the first half of the month and receives $8,000 for services rendered.
**January 29**
Pays the dental hygienist $2,500.
**January 31**
Bills patients for services rendered that have not been paid $5,000.
#### Journal Entries Spreadsheet:
| Date | Account | Debit | Credit |
|------------|--------------------------|--------|--------|
| **1/1/16** | Cash | 10,000 | |
| | Capital | | 10,000 |
| **1/2/16** | | | |
| **1/3/16** | | | |
| **1/4/06** | | | |
| **1/20/16**| | | |
| **1/21/16**| | | |
| **1/29/16**| | | |
| **1/31/16**| | | |
#### Chart of Accounts:
- **Cash**
- **Accounts Receivable**
- **Equipment**
- **Notes Payable**
- **Capital**
- **Fees Earned**
- **Insurance Expense**
- **Advertising Expense**
- **Salaries Expense**
#### Additional Queries:
1. **What is the net income for January?**
2. **How much do patients owe the dentist as of January 31?**
This example illustrates how to record the financial activities of a dental practice. Keeping such detailed records helps track the financial health of the practice and ensures accurate reporting for taxation and business analysis purposes.
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