Unit 3 Flashcards
AJE - Performed services for patients who had dental plan insurance. At January 31st, $875 of such services were performed but not yet recorded.
DR Accounts Receivable $875
CR Service Revenue $875
Utility expenses incurred but not paid prior to January 31 totaled $650
DR Utilities Expense $650
CR Utilities Payable $675
Purchased dental equipment on January 1 for $80,000, paying $20,000 in cash and signing a $60,000, 3-year note payable. The equipment depreciates $400 per month. Interest is $500 per month.
DR Depreciation Expense $400
CR Accumulated Depreciation - Equipment $400
DR Interest Expense $500
CR Interest Payable $500
Purchased a one-year malpractice insurance policy on January 1 for $24,000.
DR Insurance Expense $2,000
CR Prepaid Insurance $2,000
Purchased $1,600 of dental supplies. On January 31, determined that $400 of supplies were on hand.
DR Supplies Expense $1,200
CR Supplies $1,200
Company borrowed $10,000 by signing a 12%, one-year note on September 1, 2015.
DR Interest Expense $400
CR Interest Payable ($10,000 x 12% x 4/12) $400
A count of supplies on December 31, 2015, indicates that supplies of $900 are on hand
DR Supplies Expense $1,550
CR Supplies ($2,450 - $900) $1,550
Depreciation on the equipment for 2015 is $1,000.
DR Depreciation Expense $1,000
CR Accumulated Depreciation - Equipment $1,000
Company paid $2,100 for 12 months of insurance coverage on June 1, 2015.
DR Insurance Expense $1,225
CR Prepaid Insurance ($2,100 x 7/12) $1,225
On December 1, 2015, Company collected $30,000 for consulting services to be performed from December 1, 2015, through March 31, 2016.
DR Unearned Service Revenue $7,500
CR Service Revenue ($30,000 x 1/4) $7,500
Company performed consulting services for a client in December 2015. The client will be billed $4,200.
DR Accounts Receivable $4,200
CR Service Revenue $4,200
Company pays its employees total salaries of $9,000 every Monday for the preceding 5-day week (Monday through Friday). On Monday, December 29, employees were paid for the week ending December 26. All employees worked the last 3 days of 2015.
DR Salaries and Wages Expense $5,400
CR Salaries and Wages Payable ($9,000 x 3/5) $5,400
