Question
Sheridan Bennett, D.D.S., opened an incorporated dental practice called Sheridan Bennett Professional Dentistry Corporation on January 1, 2025. During the first month of operations
Sheridan Bennett, D.D.S., opened an incorporated dental practice called Sheridan Bennett Professional Dentistry Corporation on January 1, 2025. During the first month of operations the following selected transactions occurred: 1. Performed services for patients who had dental plan insurance. At January 31, $710 of such services was earned but not yet billed to the insurance companies. 2. Utility expenses incurred but not paid prior to January 31 totalled $590. 3. Purchased dental equipment on January 1 for $91,200, paying $22,800 in cash and signing a $68,400, 3-year bank loan payable (interest is paid each December 31). The equipment depreciation is $490 per month. Interest on the bank loan is $570 per month. 4. Purchased a 1-year malpractice insurance policy on January 1 for $27,360. The cost of the insurance policy was debited to the Prepaid Insurance account when paid on January 1, 2025. 5. Purchased $2,080 of dental supplies (recorded as increase to Supplies). On January 31 determined that $610 of supplies were on hand. 6. Estimated income taxes for the month amounting to $310, to be paid next month. Prepare the adjusting entries on January 31, 2025. (Credit account titles are automatically indented when amount is entered. Do not indent manually. List all debit entries before credit entries. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) No. Date Account Titles and Explanation 1. Jan. 31 Accounts Receivable Service Revenue 2. Jan. 31 Utilities Expense Accounts Payable 3. Jan. 31 Depreciation Expense Accumulated Depreciation - Equipment Jan. 31 (To record depreciation) Debit 710 590 490 (To record interest) 4. Jan. 31 Insurance Expense 2280 Prepaid Insurance 5. Jan. 31 Supplies Expense 1470 Supplies 6. Jan. 31 Income Tax Expense 310 Income Tax Payable Credit 710 590 490 2280 1470 310
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