Comprehensive Exercise (1) 1. ABC Dental Practice opened on January 1, 2020. During the first month of operations, the following transactions occurred. 1. Performed services for patients totaling $7,850, which has not yet been recorded. 2. Utility expenses incurred but not paid prior to January 31 totaled $2,500. 3. Purchased dental equipment on January 1 for $900.000, paying $250,000 in cash and signing a $650,000 3-year note payable. The equipment depreciates $5,000 per month. Interest is $5,500 per month 4. Purchased a 1-year malpractice insurance policy on January 1 for $150,000 5. Purchased $17,000 of dental supplies. On January 31, determined that $3,000 of supplies were on hand. Instructions Prepare the adjusting entries on January 31. Comprehensive Exercise (2) The income statement of XYZ Ltd. for the month of July shows net income of $140,000 based on Service Revenue $550,000, Salaries and Wages Expense $230,000, Supplies Expense $120,000, and Utilities Expense $60,000. In reviewing the statement, you discover the following. 1. Insurance expired during July of $45,000 was omitted. 2. Supplies expense includes $30,000 of supplies that are still on hand at July 31. 3. Depreciation on equipment of $18,000 was omitted. 4. Accrued but unpaid salaries and wages at July 31 of $40,000 were not included 5. Services performed but unrecorded totaled $60,000 Instructions Prepare a correct income statement for July 2020