Andy Wright, D.D.S, opened a dental practice on January 1, 2010. During the first month of

Question

operations the following transactions occurred. 1. Performed services for patients who had dental plan insurance. At January 31, $875 of such services was earned but not yet recorded.

2. Utility expenses incurred but not paid prior to January 31 totaled $520. 3. Purchased dental equipment on January 1 for $80,000, paying $20,000 in cash and signing a

$60,000, 3-year note payable. The equipment depreciates $400 per month. Interest is $500 per

month. 4. Purchased a one-year malpractice Insurance policy on January 1 for $12,000. 5. Purchased $1,600 of dental supplies. On January 31, determined that $400 of supplies were

on hand. Instructions

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