Adjusting and Closing Entries

Instructions:
1. C. Rosenblatt, M.D. adjusts and closes her books monthly. Use the additional Information
below to help record the adjusting entries on June 30 in the worksheet after one month of
being open.

Additional Information for Adjusting Entries:

 The office supplies on hand June 30 were worth $140.
 The medical supplies on hand June 30 were worth $275.
 On June 1, C. Rosenblatt paid three months' rent in advance to Sure Realty in the amount
$3,000. Prepare the adjusting entry for one month of rent which has been used up.
 On June 2, $2,000 was paid to purchase a six-month insurance policy. Prepare the adjusting
entry after one month of insurance has expired.
 One of the clients, who originally was schedule for Emergency services in June, had to
cancel and post-pone to July. The accounting clerk originally credited Emergency Fees for
$200.
 Depreciation is calculated on a straight-line basis. The Office Equipment of $10,000 is
expected to last 5 years, after which it will be worth $2,200. The medical equipment of
$15,000 is expected to last 8 years, after which it will be worth $5000. Use the formula
(original cost – estimated trade-in value / years of life) to determine the yearly depreciation
and adjust for ONE MONTH of depreciation.

2. Finish and total the worksheet by extending the balances to either the Income Statement or
Balance Sheet.
3. Journalize the adjusting entries
4. Using the information on the worksheet prepare the closing entries in the journal to close all
temporary accounts.