Brian Brunn, D.D.S., opened an incorporated dental practice on January 1, 2001.

During the first month of operations the following transactions occurred:

1. Performed services for patients who had dental plan insurance. At January 31, $750 of such services was earned but not yet billed to the insurance companies.

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 (Interest is paid each December 31). The equipment depreciates $400 per month. Interest is $500 per month.

4. Purchased a 1-year malpractice insurance policy on January 1 for $12,000.

5. Purchased $1,600 of dental supplies. On January 31 determined that $500 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.