Problem
Robin Shalit, D.D.S., opened a dental practice on January 1, 2015. During the first month of operations, the following transactions occurred.
1. Performed services for patients who had dental plan insurance. At January 31, $803 of such services were performed but not yet recorded.
2. Utility expenses incurred but not paid prior to January 31 totaled $678.
3. Purchased dental equipment on January 1 for $86,000, paying $28,200 in cash and signing a $57,800, 3-year note payable. (a) The equipment depreciates $430 per month. (b) Interest is $578 per month.
4. Purchased a one-year malpractice insurance policy on January 1 for $22,212.
5. Purchased $1,641 of dental supplies. On January 31, determined that $398 of 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 Expense, and Accounts Payable.