Linda Williams, D.D.S., opened a dental practice on January 1, 2020. During the first month of operations, the following transactions occurred.1. Performed services for patients who had dental plan insurance. At January 31, $818 of such services was performed but not yet billed to the insurance companies.2. Utility expenses incurred but not paid prior to January 31 totaled $500.3. Purchased dental equipment on January 1 for $83,000, paying $18,000 in cash and signing a $65,000, 3-year note payable. (a) The equipment depreciates $378 per month. (b) Interest is $450 per month.4. Purchased a one-year malpractice insurance policy on January 1 for $12,360.5. Purchased $1,717 of dental supplies. On January 31, determined that $540 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 Expenses, and Accounts Payable

Name: Linda Williams, D.D.S., opened a dental practice on January 1, 2020. D
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Description: Linda Williams, D.D.S., opened a dental practice on January 1, 2020. During the first month of operations, the following transactions occurred.1. Performed services for patients who had dental plan insurance. At January 31, $818 of such services was

Insurance Expense = Total amount of policy x 1 months / 12 months = $12,360*1/12 = $1,030

Answered: Linda Williams, D.D.S., opened a dental…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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Linda Williams, D.D.S., opened a dental practice on January 1, 2020. During the first month of operations, the following transactions occurred.

1.		Performed services for patients who had dental plan insurance. At January 31, $818 of such services was performed but not yet billed to the insurance companies.
2.		Utility expenses incurred but not paid prior to January 31 totaled $500.
3.		Purchased dental equipment on January 1 for $83,000, paying $18,000 in cash and signing a $65,000, 3-year note payable. (a) The equipment depreciates $378 per month. (b) Interest is $450 per month.
4.		Purchased a one-year malpractice insurance policy on January 1 for $12,360.
5.		Purchased $1,717 of dental supplies. On January 31, determined that $540 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 Expenses, and Accounts Payable

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