Evan Watts opened a dental practice on January 1, 2017. During the first month of operations, the following transactions occurred.
1. Watts performed services for patients totalling $2,400. These services have not yet been recorded.
2. Utility expenses incurred but not paid prior to January 31 totalled $400.
3. Purchased dental equipment on January 1 for $80,000, paying $20,000 in cash and signing a $60,000, three-year note payable. The equipment depreciates $500 per month. Interest is $600 per month.
4. Purchased a one-year malpractice insurance policy on January 1 for $12,000.
5. Purchased $2,600 of dental supplies. On January 31, determined that $900 of supplies were on hand.
Instructions
Prepare the adjusting entries on January 31.