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Exercise 3-8

Meghan Lindh, D.D.S., opened a dental practice on January 1, 2017. During the first month of operations, the following transactions occurred.

1. Performed services for patients who had dental plan insurance. At January 31, $880 of such services were performed but not yet recorded.
2. Utility expenses incurred but not paid prior to January 31 totaled $660.
3. Purchased dental equipment on January 1 for $86,000, paying $27,000 in cash and signing a $59,000, 3-year note payable.
(a) The equipment depreciates $430 per month.
(b) Interest is $490 per month.
4. Purchased a one-year malpractice insurance policy on January 1 for $22,680.
5. Purchased $1,500 of dental supplies. On January 31, determined that $500 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 Accounts 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

4. Jan. 31

5. Jan. 31

6. Jan. 31

Exercise 3-9

The trial balance for Pioneer Advertising is shown below.

Pioneer Advertising

Trial Balance

October 31, 2017
Debit
Credit
Cash $14,000
Supplies 2,500
Prepaid Insurance 600
Equipment 5,900
Notes Payable $4,000
Accounts Payable 2,600
Unearned Service Revenue 1,800
Owner’s Capital 7,800
Owner’s Drawings 400
Service Revenue 11,700
Salaries and Wages Expense 3,700
Rent Expense 800
$27,900
$27,900

Assume the following adjustment data.

1. Supplies on hand at October 31 total $600.
2. Expired insurance for the month is $300.
3. Depreciation for the month is $80.
4. Services related to unearned service revenue in October worth $600 were performed.
5. Services performed but not recorded at October 31 are $200.
6. Interest accrued at October 31 is $80.
7. Accrued salaries at October 31 are $1,700.

Prepare the adjusting entries for the items above.
(Credit account titles are automatically indented when the amount is entered. Do not indent manually.)

No.
Date
Account Titles and Explanation
Debit
Credit
1. Oct. 31








2. Oct. 31








3. Oct. 31








4. Oct. 31






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