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

question 69

Essay

End-of-period adjustments
West Laboratory adjusts and closes its accounts at the end of each month.The trial balance at September 30,2018,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:

Process Costs

Costs that are incurred in the production process, often relating to the manufacturing of goods, which typically include labor, materials, and overhead expenses.

Productive Process

The procedures involved in creating a product or service, encompassing everything from the acquisition of raw materials to the manufacture, labor, and overhead costs.

Materials Markup

The sum included in the goods' cost price to cover both overhead expenses and profit.

Time and Materials Pricing

A pricing method where customers are charged based on the actual time spent and materials used on their project.