Marigold Corp., opened an incorporated dental practice on January 1, 2022. During the first month of operations, the following transactions occurred. 1. Performed services for patients who had dental plan insurance. At January 31, $890 of such services was completed but not yet billed to the insurance companies. 2. Utility expenses incurred but not paid prior to January 31 totaled $670. 3. Purchased dental equipment on January 1 for $85,500, paying $29,250 in cash and signing a $56,250, 3-year note payable (interest is paid each December 31). The equipment depreciates $620 per month. Interest is $470 per month. 4. Purchased a 1-year malpractice insurance policy on January 1 for $24,000. 5. Purchased $2,650 of dental supplies (recorded as increase to Supplies). On January 31, determined that $680 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. No. Date Account Titles and Explanation Debit Credit 1. Jan. 31 enter an account title to record the first transaction Enter a debit amount Enter a credit amount enter an account title to record the first transaction Enter a debit amount Enter a credit amount 2. Jan. 31 enter an account title to record the second transaction Enter a debit amount Enter a credit amount enter an account title to record the second transaction Enter a debit amount Enter a credit amount 3. Jan. 31 enter an account title to record depreciation expense Enter a debit amount Enter a credit amount enter an account title to record depreciation expense Enter a debit amount Enter a credit amount (To record depreciation expense) enter an account title for to record interest expense Enter a debit amount Enter a credit amount enter an account title to record interest expense Enter a debit amount Enter a credit amount (To record interest expense) 4. Jan. 31 enter an account title to record the fourth transaction Enter a debit amount Enter a credit amount enter an account title to record the fourth transaction Enter a debit amount Enter a credit amount 5. Jan. 31 enter an account title to record the fifth transaction Enter a debit amount Enter a credit amount enter an account title to record the fifth transaction Enter a debit amount Enter a credit amountMarigold Corp., opened an incorporated dental practice on January 1, 2022. During the first month of operations, the following transactions occurred. 1. Performed services for patients who had dental plan insurance. At January 31, $890 of such services was completed but not yet billed to the insurance companies. 2. Utility expenses incurred but not paid prior to January 31 totaled $670. 3. Purchased dental equipment on January 1 for $85,500, paying $29,250 in cash and signing a $56,250, 3-year note payable (interest is paid each December 31). The equipment depreciates $620 per month. Interest is $470 per month. 4. Purchased a 1-year malpractice insurance policy on January 1 for $24,000. 5. Purchased $2,650 of dental supplies (recorded as increase to Supplies). On January 31, determined that $680 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. No. Date Account Titles and Explanation Debit Credit 1. Jan. 31 enter an account title to record the first transaction Enter a debit amount Enter a credit amount enter an account title to record the first transaction Enter a debit amount Enter a credit amount 2. Jan. 31 enter an account title to record the second transaction Enter a debit amount Enter a credit amount enter an account title to record the second transaction Enter a debit amount Enter a credit amount 3. Jan. 31 enter an account title to record depreciation expense Enter a debit amount Enter a credit amount enter an account title to record depreciation expense Enter a debit amount Enter a credit amount (To record depreciation expense) enter an account title for to record interest expense Enter a debit amount Enter a credit amount enter an account title to record interest expense Enter a debit amount Enter a credit amount (To record interest expense) 4. Jan. 31 enter an account title to record the fourth transaction Enter a debit amount Enter a credit amount enter an account title to record the fourth transaction Enter a debit amount Enter a credit amount 5. Jan. 31 enter an account title to record the fifth transaction Enter a debit amount Enter a credit amount enter an account title to record the fifth transaction Enter a debit amount Enter a credit amount
Marigold Corp., opened an incorporated dental practice on January 1, 2022. During the first month of operations, the following transactions occurred. 1. Performed services for patients who had dental plan insurance. At January 31, $890 of such services was completed but not yet billed to the insurance companies. 2. Utility expenses incurred but not paid prior to January 31 totaled $670. 3. Purchased dental equipment on January 1 for $85,500, paying $29,250 in cash and signing a $56,250, 3-year note payable (interest is paid each December 31). The equipment depreciates $620 per month. Interest is $470 per month. 4. Purchased a 1-year malpractice insurance policy on January 1 for $24,000. 5. Purchased $2,650 of dental supplies (recorded as increase to Supplies). On January 31, determined that $680 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. No. Date Account Titles and Explanation Debit Credit 1. Jan. 31 enter an account title to record the first transaction Enter a debit amount Enter a credit amount enter an account title to record the first transaction Enter a debit amount Enter a credit amount 2. Jan. 31 enter an account title to record the second transaction Enter a debit amount Enter a credit amount enter an account title to record the second transaction Enter a debit amount Enter a credit amount 3. Jan. 31 enter an account title to record depreciation expense Enter a debit amount Enter a credit amount enter an account title to record depreciation expense Enter a debit amount Enter a credit amount (To record depreciation expense) enter an account title for to record interest expense Enter a debit amount Enter a credit amount enter an account title to record interest expense Enter a debit amount Enter a credit amount (To record interest expense) 4. Jan. 31 enter an account title to record the fourth transaction Enter a debit amount Enter a credit amount enter an account title to record the fourth transaction Enter a debit amount Enter a credit amount 5. Jan. 31 enter an account title to record the fifth transaction Enter a debit amount Enter a credit amount enter an account title to record the fifth transaction Enter a debit amount Enter a credit amountMarigold Corp., opened an incorporated dental practice on January 1, 2022. During the first month of operations, the following transactions occurred. 1. Performed services for patients who had dental plan insurance. At January 31, $890 of such services was completed but not yet billed to the insurance companies. 2. Utility expenses incurred but not paid prior to January 31 totaled $670. 3. Purchased dental equipment on January 1 for $85,500, paying $29,250 in cash and signing a $56,250, 3-year note payable (interest is paid each December 31). The equipment depreciates $620 per month. Interest is $470 per month. 4. Purchased a 1-year malpractice insurance policy on January 1 for $24,000. 5. Purchased $2,650 of dental supplies (recorded as increase to Supplies). On January 31, determined that $680 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. No. Date Account Titles and Explanation Debit Credit 1. Jan. 31 enter an account title to record the first transaction Enter a debit amount Enter a credit amount enter an account title to record the first transaction Enter a debit amount Enter a credit amount 2. Jan. 31 enter an account title to record the second transaction Enter a debit amount Enter a credit amount enter an account title to record the second transaction Enter a debit amount Enter a credit amount 3. Jan. 31 enter an account title to record depreciation expense Enter a debit amount Enter a credit amount enter an account title to record depreciation expense Enter a debit amount Enter a credit amount (To record depreciation expense) enter an account title for to record interest expense Enter a debit amount Enter a credit amount enter an account title to record interest expense Enter a debit amount Enter a credit amount (To record interest expense) 4. Jan. 31 enter an account title to record the fourth transaction Enter a debit amount Enter a credit amount enter an account title to record the fourth transaction Enter a debit amount Enter a credit amount 5. Jan. 31 enter an account title to record the fifth transaction Enter a debit amount Enter a credit amount enter an account title to record the fifth transaction Enter a debit amount Enter a credit amount
Chapter12: Current Liabilities
Section: Chapter Questions
Problem 1PA: Consider the following situations and determine (1) which type of liability should be recognized...
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Marigold Corp., opened an incorporated dental practice on January 1, 2022. During the first month of operations, the following transactions occurred.
| 1. | Performed services for patients who had dental plan insurance. At January 31, $890 of such services was completed but not yet billed to the insurance companies. | |
| 2. | Utility expenses incurred but not paid prior to January 31 totaled $670. | |
| 3. | Purchased dental equipment on January 1 for $85,500, paying $29,250 in cash and signing a $56,250, 3-year note payable (interest is paid each December 31). The equipment |
|
| 4. | Purchased a 1-year malpractice insurance policy on January 1 for $24,000. | |
| 5. | Purchased $2,650 of dental supplies (recorded as increase to Supplies). On January 31, determined that $680 of supplies were on hand. |
Prepare the
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No.
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Date
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Account Titles and Explanation
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Debit
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Credit
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||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
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1.
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Jan. 31
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enter an account title to record the first transaction
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Enter a debit amount
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Enter a credit amount
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||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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enter an account title to record the first transaction
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Enter a debit amount
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Enter a credit amount
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||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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2.
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Jan. 31
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enter an account title to record the second transaction
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Enter a debit amount
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Enter a credit amount
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||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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enter an account title to record the second transaction
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Enter a debit amount
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Enter a credit amount
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||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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3.
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Jan. 31
|
enter an account title to record depreciation expense
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Enter a debit amount
|
Enter a credit amount
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
enter an account title to record depreciation expense
|
Enter a debit amount
|
Enter a credit amount
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| (To record depreciation expense) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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enter an account title for to record interest expense
|
Enter a debit amount
|
Enter a credit amount
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
enter an account title to record interest expense
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Enter a debit amount
|
Enter a credit amount
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| (To record interest expense) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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4.
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Jan. 31
|
enter an account title to record the fourth transaction
|
Enter a debit amount
|
Enter a credit amount
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
enter an account title to record the fourth transaction
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Enter a debit amount
|
Enter a credit amount
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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5.
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Jan. 31
|
enter an account title to record the fifth transaction
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Enter a debit amount
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Enter a credit amount
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||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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enter an account title to record the fifth transaction
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Enter a debit amount
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Enter a credit amountMarigold Corp., opened an incorporated dental practice on January 1, 2022. During the first month of operations, the following transactions occurred.
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.
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