• Exercise 2 Evan Watts, D.D.S., opened a dental practice on January 1, 2017. During the first month of operations, the following transactions occurred. 1. Watts performed services for patients totaling $2,400. These services have not yet been recorded. 2. Utility expenses incurred but not paid prior to January 31 totaled $400. 3. Purchased dental equipment on January 1 for $80,000, paying $20,000 in cash and signing a $60,000, 3-year note payable. The equipment depreciates $500 per month. Interest is $600 per month. 4. Purchased a one-year malpractice insurance policy on January 1 for $12,000. 5. Purchased $2,600 of dental supplies. On January 31, determined that $900 of supplies were on hand