End-Of-Period Adjustments West Laboratory Adjusts and Closes Its Accounts at the End

question 85

Essay

End-of-period adjustments
West Laboratory adjusts and closes its accounts at the end of each month.The trial balance at September 30,2015,before adjustments,is as follows: The following information relates to month end adjustments:
(a)Office supplies on hand September 30 amounted to $500.
(b)The useful life of the medical equipment was estimated to be 20 years.
(c)Many patients pay in advance for major medical procedures.Fees of $6,000 were earned during the month by performing procedures on patients who had paid in advance.
(d)Salaries earned by employees during the month but not yet recorded amounted to $2,300.
(e)On September 1,West Laboratory had moved and paid 2 month's rent in advance.
(f)Medical procedures performed during the month but not yet billed or recorded amounted to $4,600.
Prepare the adjusting entries required at September 30.

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Definitions:

Crime Area

A region or locality with high incidence of criminal activity.

Main Effect

The direct impact of an independent variable on a dependent variable, disregarding the effects of or interactions with other variables.

Interaction Effect

In experimental design, the effect on the dependent variable that occurs from the combined influence of two or more independent variables.

Factorial Research Design

An experimental design technique that involves studying the effects of two or more factors by changing them simultaneously to observe their interactions on dependent variables.