Steve Williams, 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, $818 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 $500. 3.   Purchased dental equipment on January 1 for $83,000, paying $18,000 in cash and signing a $65,000, 3-year note payable. (a) The equipment depreciates $378 per month. (b) Interest is $450 per month. 4.   Purchased a one-year malpractice insurance policy on January 1 for $12,360. 5.   Purchased $1,717 of dental supplies. On January 31, determined that $540 of supplies were on hand. Prepare the adjusting entries on January 31.

Question

Steve Williams, 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, $818 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 $500.
3.   Purchased dental equipment on January 1 for $83,000, paying $18,000 in cash and signing a $65,000, 3-year note payable. (a) The equipment depreciates $378 per month. (b) Interest is $450 per month.
4.   Purchased a one-year malpractice insurance policy on January 1 for $12,360.
5.   Purchased $1,717 of dental supplies. On January 31, determined that $540 of supplies were on hand.


Prepare the adjusting entries on January 31.

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