Reference no: EM132822819
Evan Watts opened a dental practice on January 1, 2021. During the first month of operations, the following transactions occurred.
1. Watts performed services for patients totalling $2,490. These services have not yet been recorded.
2. Utility expenses incurred but not paid prior to January 31 totalled $410.
3. Purchased dental equipment on January 1 for $93,000, paying $20,200 in cash and signing a $72,800, three-year note payable. The equipment depreciates $500 per month. Interest is $490 per month.
4. Purchased a one-year malpractice insurance policy on January 1 for $12,600.
5. Purchased $2,480 of dental supplies. On January 31, determined that $830 of supplies were on hand.
Problem 1: Prepare the adjusting entries on January 31.
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