Andy Wright, D.D.S., opened a dental practice on January 1, 2008. 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 was earned 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 one-year malpractice insurance policy on January 1 for \($12,000.\) 

5. Purchased \($1,600\) of dental supplies. On January 31, determined that \($400\) of supplies were on hand. 

Instructions 

Prepare the adjusting entries on January 31. Account titles are: Accumulated Depreciation- Dental Equipment, Depreciation Expense, Service Revenue, Accounts Receivable, Insurance Expense, Interest Expense, Interest Payable, Prepaid Insurance, Supplies, Supplies Expense, Utilities Expense, and Utilities Payable.