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, $1500 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 $160 000, paying $40 000 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 DepreciationDental Equipment, Depreciation Expense, Service Revenue,

Accounts Receivable, Interest Expense, Insurance Expense, Salaries Expense, Interest Payable, Prepaid Insurance and Salaries Payable