Question

Sarah Allen, 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, $749 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 $516.
3.		Purchased dental equipment on January 1 for $81,000, paying $19,000 in cash and signing a $62,000, 3-year note payable. (a) The equipment depreciates $417 per month. (b) Interest is $510 per month.
4.		Purchased a one-year malpractice insurance policy on January 1 for $13,200.
5.		Purchased $1,611 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 0 for the amounts.)

Answer 1

		Debit	Credit
January 31	Accounts Receivable	749
	Service Revenue		749
January 31	Utilities Expenses	516
	Accounts Payable		516
January 31	Depreciation Expense	417
	Accumulated Depreciation—Equipment		417
January 31	Interest Expense	510
	Interest Payable		510
January 31	Insurance Expense	1100		=13200/12
	Prepaid Insurance		1100
January 31	Supplies Expense	1141		=1611-470
	Supplies		1141