Reference no: EM132603779

Question - Linda Williams, D.D.S., opened a dental practice on January 1, 2020. During the first month of operations, the following transactions occurred.

1. Performed services for patients who had dental plan insurance. At January 31, $818 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 $500.

3. Purchased dental equipment on January 1 for $83,000, paying $18,000 in cash and signing a $65,000, 3-year note payable. (a) The equipment depreciates $378 per month. (b) Interest is $450 per month.

4. Purchased a one-year malpractice insurance policy on January 1 for $12,360.5.Purchased $1,717 of dental supplies. On January 31, determined that $540 of supplies were on hand.

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