Question

Sandra Robinson, 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 $477. 3. Purchased dental equipment on January 1 for $72,000, paying $22,000 in cash and signing a $50,000, 3-year note payable. (a) The equipment depreciates $361 per month. (b) Interest is $550 per month. 4. Purchased a one-year malpractice insurance policy on January 1 for $13,080. 5. Purchased $1,493 of dental supplies. On January 31, determined that $470 of supplies were on hand. Prepare the adjusting entries on January 31. Account titles are Accumulated Depreciation-Equipment, 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 for the amounts.)

Answer 1

No	Account Titles and Explanation	Debit	Credit
1	Accounts receivable	$784
	Service revenue		$784
	( To record service revenue)
2	Utilities expense	$477
	Accounts payable		$477
	( To record utilities expense)
3.(a)	Depreciation expense	$361
	Accumulated depreciation - Equipment		$361
	( To record depreciation expense)
3.(b)	Interest expense	$550
	Interest payable		$550
	( To record interest expense)
4.	Insurance expense	$1,090
	Prepaid insurance		$1,090
	( To record insurance expense)
5.	Supplies expense	$1,023
	Supplies		$1,023
	( To record supplies expense)

4. Insurance expense for 1 month = 13,080 x 1/12

= $1,090

5. Supplies expense = Supplies purchased - Ending supplies

= 1,493-470

= $1,023

Kindly comment if you need further assistance.

Thanks‼!