Skysong, Inc., opened an incorporated dental practice on January 1, 2017. During

Question

Skysong, Inc., opened an incorporated 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, $860 of such services was completed but not yet billed to the insurance companies. 2. Utility expenses incurred but not paid prior to January 31 toteled $480 3. Purchased dental equipment on January 1 for $89,500, paying $23,150 in cash and signing a $66,350, 3-year note payable (interest is paid each December 31) The equipment depreciates $440 per month. Interest is $600 per month. Purchased a 1-year malpractice insurance policy on January 1 for $24,000 Purchased $1,860 of dental supplies (recorded as increase to Supplies). On January 31, determined that $590 of supplies were on hand 4. 5. Prepare adjustments on January 31 and record them in the tabular summary that follows. (If a transaction results in a decrease in Assets, Liabilities or Stockholders' Equity, place a negative sign (or parentheses) in front of the amount entered for the particular Asset, Liability or Equity item that was reduced.) Assets Liabilities Stockholders Equity Retained Earnings Int. Pay Accts. Acc. Depr Accts. Com Stock + Prepd Rec. +Supplies InsrEquip. Equip. Pay +Rev 2. 3a. 3b Click if you would like to Show Work for this question:

Explanation / Answer

            Assets                                                                              Liabilities             + Stockholders Equity Accts Supplies prepaid Equipment Accumulated Accounts intt Common Rev Exp Rec. insurance Equipment payable payable Stock 1 860 860 2 480 -480 3a -440 -440 3b 600 -600 4 -2000 -2000 5 -1270 -1270 860 -1270 -2000 -440 480 600 860 -4790 1 Service revenue 2 utility expense 3a Depreciation expense 3b interest expense 4 insurance expense 5 supplies expense

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