3.7 Prepare adjusting entries LO4 Con James commenced a dental practice on 1 January 2019. During the first month of operations the following transactions occurred: (a) Performed services for patients and, at 31 January, $1500 was earned for these services but not yet billed to the patients. (b) Electricity expense incurred and not paid or recorded prior to 31 January, $1040. (c) Purchased dental equipment on 1 January 2019 for $160000, paying $40000 in cash and signing a $120 000 interest-bearing note payable. (Interest is payable on 31 December 2019.) The equipment depreciates at $1600 per month and interest on the note is $500 per month. (d) Purchased a 1-year insurance policy on 1 January 2019 for $24 000 (e) Purchased $3200 of dental supplies (recorded as an asset). On 31 January, $700 worth of supplies was still on hand Required Prepare the adjusting entries on 31 January 2019. Use these account names: Accumulated depreciation-dental equipment, Depreciation expense, Service revenue, Accounts receivable, Interest expense, Insurance expense, Salaries expense, Interest payable, Prepaid insurance and Salaries payable