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.

---

Definitions:

Worth of Goods

The total value or market price of all goods considered or evaluated.

Labor Supply Curve

A graphical representation showing how the quantity of labor supplied varies with changes in wages, illustrating the relationship between wage levels and the labor force participation rate.

Substitution Effect

A response to price changes in which consumers replace more expensive items with less costly alternatives.

Income Effect

The change in an individual's consumption patterns resulting from a change in their real income.