Reference no: EM132634640

Question - Sandra Robinson, 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, $840 of such services were performed but not yet recorded.

2. Utility expenses incurred but not paid prior to January 31 totaled $620.

3. Purchased dental equipment on January 1 for $85,000, paying $28,000 in cash and signing a $57,000.0, 3-year note payable. The equipment depreciates $425.0 per month. Interest is $570 per month.

4. Purchased a one-year malpractice insurance policy on January 1 for $25,440.

5. Purchased $1,500 of dental supplies. On January 31, determined that $500 of supplies were on hand.

Required - 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 Expense, and Utilities Payable.