Andy Wright,D.D.S., opened a dental practice on January 1, 2020. Andy prepares his financial statements monthly. During the first month of operations the following transactions occurred.

Instructions

Using the Excel template for question number 23 that you downloaded prior to starting this exam, prepare the adjusting entries on January 31. When finished answering this question, upload your completed worksheet containing your answer. 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	Utilities payable

1. Performed services for patients. At January 31, $1,280 of such services was earned but not yet recorded.
2. Utility expenses incurred but not paid or recorded prior to January 31 totaled $365.
3. Depreciation on dental equipment purchased during the month is estimated to be $500 for the month.
4. Purchased a one-year malpractice insurance policy during the month for $9,600. One month has expired.
5. Purchased $2,300 of dental supplies during the month. On January 31, determined that $700 of supplies had been used.