Con James commenced a dental practice on 1 January 2016. During the first month of operations...

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Con James commenced a dental practice on 1 January 2016. During the first month of operations the following transactions occurred. a. Performed services for patients and, at 31 January, $150o was earned for these services but not yet billed to the patients. b. Electricity expense incurred and not paid or recorded prior to 31 January, $1040. c. Purchased dental equipment on 1 January 2016 for $160 ooo, paying $40 o00 in cash and signing a $120 000 interest-bearing note payable. (Interest is payable on 31 December 2016.) The equipment depreciates at $1600 per month and interest on the note is $500 per month. d. Purchased a 1-year insurance policy on 1 January 2016 for $24 000. e. Purchased $3200 of dental supplies (recorded as an asset). On 31 January, $700 worth of supplies was still on hand. Required Prepare the adjusting entries on 31 January 2016. Use these account names: Accumulated Depreciation-Dental Equipment, Depreciation Expense, Service Revenue, Accounts Receivable, Interest Expense, Insurance Expense, Salaries Expense, Interest Payable, Prepaid Insurance and Salaries Payable. Prepare adjusting entries. Con James commenced a dental practice on 1 January 2016. During the first month of operations the following transactions occurred. a. Performed services for patients and, at 31 January, $150o was earned for these services but not yet billed to the patients. b. Electricity expense incurred and not paid or recorded prior to 31 January, $1040. c. Purchased dental equipment on 1 January 2016 for $160 ooo, paying $40 o00 in cash and signing a $120 000 interest-bearing note payable. (Interest is payable on 31 December 2016.) The equipment depreciates at $1600 per month and interest on the note is $500 per month. d. Purchased a 1-year insurance policy on 1 January 2016 for $24 000. e. Purchased $3200 of dental supplies (recorded as an asset). On 31 January, $700 worth of supplies was still on hand. Required Prepare the adjusting entries on 31 January 2016. Use these account names: Accumulated Depreciation-Dental Equipment, Depreciation Expense, Service Revenue, Accounts Receivable, Interest Expense, Insurance Expense, Salaries Expense, Interest Payable, Prepaid Insurance and Salaries Payable. Prepare adjusting entries.

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