The Grayson Clinic provides dental care services.During 2016,the clinic entered into the following transactions:
1)On October 1,collected $9,000 in advance of services being provided.The services are to be performed equally over the next 12 months.
2)On April 1,purchased insurance costing $36,000.The insurance policy would cover the next 12 months.
Required:
a)Draw T-accounts and post the year-end adjusting entries to appropriate T-accounts.
b)Analyze how the year end adjusting entries affect the Financial Statements by using the horizontal financial model below.Precede the amount with a minus sign if the transaction reduces that section of the equation.Enter 0 for items not affected.

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The Answer of The Grayson Clinic provides dental care services.During 2016,the clinic entered into the following transactions:
1)On October 1,collected $9,000 in advance of services being provided.The services are to be performed equally over the next 12 months.
2)On April 1,purchased insurance costing $36,000.The insurance policy would cover the next 12 months.
Required:
a)Draw T-accounts and post the year-end adjusting entries to appropriate T-accounts.
b)Analyze how the year end adjusting entries affect the Financial Statements by using the horizontal financial model below.Precede the amount with a minus sign if the transaction reduces that section of the equation.Enter 0 for items not affected.

The Grayson Clinic Provides Dental Care Services