Question

Exercise 3-8 Marigold Corp. opened a dental practice on January 1, 2019. During the first month...

Exercise 3-8 Marigold Corp. 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. On January 31, $840 of such services were performed but not yet recorded. 2. Utility expenses incurred but not paid before January 31 totaled $600. 3. Purchased dental equipment on January 1 for $87,000, paying $30,000 in cash and signing a $57,000, 3-year note payable. The equipment depreciates $435 per month. Interest is $470 per month. 4. Purchased a one-year malpractice insurance policy on January 1 for $26,040. 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, Utility Expense, and Utilities Payable. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) No. Date Account Titles and Explanation Debit Credit 1. Jan. 31 2. Jan. 31 3. Jan. 31 (To record monthly depreciation) Jan. 31 (To record interest on notes payable) 4. Jan. 31 5. Jan. 31

Homework Answers

Answer #1
No. Date Account Titles and Explanation Debit Credit
1 Dec. 31 Accounts Receivable 840
     Service Revenue 840
2 Dec. 31 Utilities expense 600
      Utilities Payable 600
3 Dec. 31 Depreciation expense 435
      Accumulated Depreciation—Equipment 435
(To record monthly depreciation)
Dec. 31 Interest expense 470
     Interest payable 470
(To record interest on notes payable)
4 Dec. 31 Insurance expense 2170 =26040*1/12
    Prepaid insurance 2170
5 Dec. 31 Supplies expense 1200 =1600-400
      Supplies 1200
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