Karen Weller, D D S , opened a dental practice on January 1, 2014 During the first month of operations, the following transactions occurred 1 Performed services for patients who had dental plan insurance At January 31, $760 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 $540 3 Purchased dental equipment on January 1 for $84,400, paying $26,700in cash and signing a $57,700, 3 year note payable (a)The equipment depreciates $400per month (b)Interest is $550per month 4 Purchased a one year malpractice insurance policy on January 1 for $6,000 5 Purchased $1,950of dental supplies On January 31, determined that $450of supplies were on hand Prepare the adjusting entries on January 31 Account titles to be used are Accumulated DepreciationEquipment, Depreciation Expense, Service Revenue, Accounts Receivable, Insurance Expense, Interest Expense, Interest Payable, Prepaid Insurance, Supplies, Supplies Expense, Utilities Expense, and Accounts Payable (Credit account titles are automatically indented when amount is entered Do not indent manually If no entry is required, select No entry for the account titles and enter 0 for the amounts )

The Answer is in the image, click to view ...

Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Jun 22, 2024

Karen Weller, D.D.S., opened a dental practice on January 1, 2014. During the first month of operations, the following transactions occurred. 1. Performed services for

Karen Weller, D.D.S., opened a dental practice on January 1, 2014. During the first month of operations, the following transactions occurred.

1.	Performed services for patients who had dental plan insurance. At January 31, $760 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 $540.
3.	Purchased dental equipment on January 1 for $84,400, paying $26,700in cash and signing a $57,700, 3-year note payable. (a)The equipment depreciates $400per month. (b)Interest is $550per month.
4.	Purchased a one-year malpractice insurance policy on January 1 for $6,000.
5.	Purchased $1,950of dental supplies. On January 31, determined that $450of supplies were on hand.

Prepare the adjusting entries on January 31. Account titles to be used are Accumulated DepreciationEquipment, Depreciation Expense, Service Revenue, Accounts Receivable, Insurance Expense, Interest Expense, Interest Payable, Prepaid Insurance, Supplies, Supplies Expense, Utilities Expense, and Accounts Payable.(Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts.)