Question

Novak Corp.opened an incorporated dental practice on January 1.2022. During the first month of operations, the following transactions occurred. 1. Performed services for patients who had dental plan insurance. At January 31.5930 of such services was completed but not yet billed to the insurance companies 2. Utility expenses incurred but not paid prior to January 31 totaled $520 3. Purchased dental equipment on January 1 for $87600, paying $28250 in cash and signing a $59350, 3-year note payable interest is paideach December 311. The equipment depreciates 5540 per month interest is 5670 per month 4. Purchased a 1-year malpractice insurance policy on January 1 for $24000 5. Purchased $2320 of dental supplies recorded as increase to Supplies On January 31. determined that 5610 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 Expense and Accounts Payable, no entry is required select "No Entry for the account tities and enter for the amounts Credit account titles are automatically indented when the amount is entered. Do not indent manual)

Answer 1

Journal entries

No	date	account and explanation	Debit	Credit
1	Jan 31	Account receivable	930
		Service revenue		930
2	Jan 31	Utilities expense	520
		Utilities payable		520
3	Jan 31	Depreciation expense	540
		Accumulated depreciation-equipment		540
		(To record Dep)
		Interest expense	670
		Interest payable		670
		(To record interest)
4	Jan 31	Insurance expense (24000/12)	2000
		Prepaid insurance		2000
5	Jan 31	Supplies expense (2320-610)	1710
		Supplies		1710