Reference no: EM132051625

Question - Karen Weller, D.D.S., opened a dental practice on January 1, 2014. During the first month of operations, the following transactions occurred.

1. Performed services for patients who had dental plan insurance. At January 31, $820 of such services was performed but not yet billed to the insurance companies.

2. Utility expenses incurred but not paid prior to January 31 totaled $510.

3. Purchased dental equipment on January 1 for $86,000, paying $25,800 in cash and signing a $60,200, 3-year note payable. (a) The equipment depreciates $400 per month. (b) Interest is $600 per month.

4. Purchased a one-year malpractice insurance policy on January 1 for $9,000.

5. Purchased $1,680 of dental supplies. On January 31, determined that $450 of supplies were on hand.

Prepare the adjusting entries on January 31. Account titles to be used are Accumulated Depreciation-Equipment, Depreciation Expense, Service Revenue, Accounts Receivable, Insurance Expense, Interest Expense, Interest Payable, Prepaid Insurance, Supplies, Supplies Expense, Utilities Expense, and Accounts Payable.