Why notes payable

E3.8 (LO 2, 3) Lorena Manzone, D.D.S., opened a dental practice on January 1,2020. During month of operations, the following transactions occurred. the first 1, 2020. Du 1. Performed services for patients who had dental plan insurance. At January 31, $785 of such services were performed but not yet recorded. 2. Utility expenses incurred but not paid prior to January 31 totaled $650. 3. Purchased dental equipment on January 1 for $80,000, paying $30.000 in cash and signing a 5504000 3-year note payable. The equipment depreciates $400 per month. Interest is $500 per mont h. 4. Purchased a one-year malpractice insurance policy on January 1 for $24,000. 5. Purchased $1,600 of dental supplies. On January 31, determined that $400 of suppl ies were on hand. Instructions Prepare the adjusting entries on Japuary 31. Account titles are Accumulated Depreiation-Equipment. Depreciation Expense, Service Revenue, Accounts Receivable, Insurance Expense, Interest Expehse Interest Payable, Prepaid Insurance, Supplies, Supplies Expense, Utilities Expehse, and Uilities Payable