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Sheffield 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, $840 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 $450. 3. Purchased dental equipment on January 1 for $86,850, paying $29,150 in cash and signing a $57,700, 3-year note payable (interest is paid each December 31). The equipment depreciates $550 per month. Interest is $670 per month. 4. Purchased a 1-year malpractice insurance policy on January 1 for $24,000. 5. Purchased $2,190 of dental supplies (recorded as increase to Supplies). On January 31, determined that $580 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. (If no entry is required, select "No Entry' or the account titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.)

Sheffield 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, $840 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 $450. 3. Purchased dental equipment on January 1 for $86,850, paying $29,150 in cash and signing a $57,700, 3-year note payable (interest is paid each December 31). The equipment depreciates $550 per month. Interest is $670 per month. 4. Purchased a 1-year malpractice insurance policy on January 1 for $24,000. 5. Purchased $2,190 of dental supplies (recorded as increase to Supplies). On January 31, determined that $580 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. (If no entry is required, select "No Entry' or the account titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.)

Cornerstones of Financial Accounting
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter2: The Accounting Information System
Section: Chapter Questions
Problem 65.2C
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Exercise 4-10 7 Your answer is partially correct. Try again. Sheffield 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, $840 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 $450. 3. Purchased dental equipment on January 1 for $86,850, paying $29,150 in cash and signing a $57,700, 3-year note payable (interest is paid each December 31). The equipment depreciates $550 per month. Interest is $670 per month. Purchased a 1-year malpractice insurance policy on January 1 for $24,000. 4. 5. Purchased $2,190 of dental supplies (recorded as increase to Supplies). On January 31, determined that $580 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. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. 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 Accounts Receivable 840 Service Revenue 840 2. Jan. 31 Utilities Expense 450 Accounts Payable 450 3. Jan. 31 TAccumulated Depreciation-Buildings 550
Transcribed Image Text:Exercise 4-10 7 Your answer is partially correct. Try again. Sheffield 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, $840 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 $450. 3. Purchased dental equipment on January 1 for $86,850, paying $29,150 in cash and signing a $57,700, 3-year note payable (interest is paid each December 31). The equipment depreciates $550 per month. Interest is $670 per month. Purchased a 1-year malpractice insurance policy on January 1 for $24,000. 4. 5. Purchased $2,190 of dental supplies (recorded as increase to Supplies). On January 31, determined that $580 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. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. 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 Accounts Receivable 840 Service Revenue 840 2. Jan. 31 Utilities Expense 450 Accounts Payable 450 3. Jan. 31 TAccumulated Depreciation-Buildings 550
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