Question
Carla Weller, D.D.S., opened a dental practice on January 1, 2017. During the first month of operations, the following transactions occurred. 1.Performed services for patients
Carla Weller, D.D.S., opened a dental practice on January 1, 2017. During the first month of operations, the following transactions occurred.
1.Performed services for patients who had dental plan insurance. At January 31, $797 of such services was performed but not yet billed to the insurance companies.
2.Utility expenses incurred but not paid prior to January 31 totaled $469.
3.Purchased dental equipment on January 1 for $75,000, paying $20,000in cash and signing a $55,000, 3-year note payable. (a)The equipment depreciates $383per month. (b)Interest is $450per month.
4.Purchased a one-year malpractice insurance policy on January 1 for $11,400.
5.Purchased $1,529of dental supplies. On January 31, determined that $470of supplies were on hand.
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 Expenses, and Accounts Payable.
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