Question

Question 9 of 12 -/1 = View Policies Current Attempt in Progress Monty Corp., opened an incorporated dental practice on January 1, 2022. During the first month of operations, the following transactions occurred. 1. 2 3. Performed services for patients who had dental plan insurance. At January 31, $983 of such services was completed but not yet billed to the insurance companies. Utility expenses incurred but not paid or recorded prior to January 31 totaled $585. Purchased dental equipment on January 1 for $104,000, paying $26,000 in cash and signing a $78,000, 3-year note payable (interest is paid each December 31). The equipment depreciates $520 per month. Interest is $650 per month. Purchased a 1-year malpractice insurance policy on January 1 for $31,200. Purchased $2,275 of dental supplies (recorded as increase to Supplies). On January 31, determined that $715 of supplies were on hand 4. 5. Prepare the adjusting entries on January 31. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.)

Answer 1

Adjusting entries

No	Date	General Journal	Debit	Credit
1	Jan 31	Account receivable	983
		Service revenue		983
2	Jan 31	Utilities expense	585
		Account payable		585
3	Jan 31	Depreciation expense	520
		Accumulated depreciation-equipment		520
		(To record depreciation)
		Interest expense	650
		Interest payable		650
		(To record interest)
4	Jan 31	Insurance expense (31200/12)	2600
		Prepaid insurance		2600
5	Jan 31	Supplies expense (2275-715)	1560
		Supplies		1560