Exercise 3-6

Vaughn Weller, D.D.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, $800 of such services was performed but not yet billed to the insurance companies.2.Utility expenses incurred but not paid prior to January 31 totaled $498.3.Purchased dental equipment on January 1 for $75,000, paying $21,000in cash and signing a $54,000, 3-year note payable. (a)The equipment depreciates $364per month. (b)Interest is $520per month.4.Purchased a one-year malpractice insurance policy on January 1 for $10,920.5.Purchased $1,665of dental supplies. On January 31, determined that $520of supplies were on hand.

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 Expenses, andAccounts Payable.