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Lisa Anderson, D.D.S., opened a dental practice on January 1, 2020. During the first month of operations, the following transactions occurred. 1. Performed services for

Lisa Anderson, D.D.S., opened a dental practice on January 1, 2020. During the first month of operations, the following transactions occurred.

1. Performed services for patients who had dental plan insurance. At January 31, $784 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 $567. 3. Purchased dental equipment on January 1 for $72,000, paying $18,000 in cash and signing a $54,000, 3-year note payable. (a) The equipment depreciates $399 per month. (b) Interest is $500 per month. 4. Purchased a one-year malpractice insurance policy on January 1 for $12,480. 5. Purchased $1,508 of dental supplies. On January 31, determined that $460 of supplies were on hand.

Prepare the adjusting entries on January 31. Account titles are Accumulated DepreciationEquipment, Depreciation Expense, Service Revenue, Accounts Receivable, Insurance Expense, Interest Expense, Interest Payable, Prepaid Insurance, Supplies, Supplies Expense, Utilities Expenses, 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.)

[[[ below are my answers, all of them are correct, except the highlighted!]]] Please correct No. 2

No Account and explanation debit credit
1 Account receivable 784
Service revenue 784
(To record service revenue)
2 Utilities expense 567
Utilities payable [ WRONG ] 567
(To record accured utilities)
3 Depreciation expense 399
Accumlated depreciation-equipment 399
(To record depreciation expense)
Interest expense 500
Interest payable 500
(To record accured interest)
4 Insurance expense (12,480/12) 1040
Prepaid insurance 1040
(To record insurance expense)
5 Supplies expense (1,508-460) 1048
Supplies 1048
(To record supplies adjusted)

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