The Grayson Clinic provides dental care services. During Year 1, 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 record each of the adjustments required in those T-accounts.b)Analyze how the year end adjusting entries affect the financial statements using the horizontal financial model below. (Put parentheses around amounts that decrease a financial statement element.)

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The Answer of The Grayson Clinic provides dental care services. During Year 1, 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 record each of the adjustments required in those T-accounts.b)Analyze how the year end adjusting entries affect the financial statements using the horizontal financial model below. (Put parentheses around amounts that decrease a financial statement element.)

The Grayson Clinic Provides Dental Care Services