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:

Low Demand

A situation characterized by a reduced desire or need for products or services in the market.

Forecasting

The process of making predictions about future events or trends based on historical data analysis or model projections.

Future Demand

The anticipated need or desire for products or services in an upcoming period, based on trends, historical data, and forecasting models.

Conditions

The existing circumstances or state of affairs surrounding a situation or the terms affecting agreements and contracts.