Kaya Abbas, D.D.S. A.S¸., opened a dental practice on January 1, 2017. During the first month of operations, the following transactions occurred.

1. Performed services for patients who had dental plan insurance. At January 31, 875 of such services were performed but not yet recorded.

2. Utility expenses incurred but not paid prior to January 31 totaled 520.

3. Purchased dental equipment on January 1 for 80,000, paying 20,000 in cash and signing a 60,000, 3-year note payable. The equipment depreciates 400 per month. Interest is 500 per month.

4. Purchased a six-month malpractice insurance policy on January 1 for 18,000.

5. Purchased 1,600 of dental supplies. On January 31, determined that 700 of supplies were on hand.

Instructions

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 Utilities Payable.