E3-6B (Adjusting Entries) Cheng, D.D.S., opened a dental practice on January 1, 2014.

E3-6B (Adjusting Entries) Cheng, D.D.S., opened a dental practice on January 1, 2014. During the first month of operations the following transactions occurred.

1. Performed services for patients who had dental plan insurance. At January 31, $375 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 $260.

3. Purchased dental equipment on January 1 for $40,000, paying $10,000 in cash and signing a $30,000, 3-year note payable. The equipment depreciates $200 per month. Interest is $250 per month.

4. Purchased a one-year malpractice insurance policy on January 1 for $6,000.

5. Purchased $800 of dental supplies. On January 31, determined that $250 of supplies were on hand.

Instructions

Prepare the adjusting entries on January 31. Account titles are: Accumulated Depreciation—Equipment Interest Payable Depreciation Expense Prepaid Insurance   Service Revenue Supplies

Accounts Receivable             Supplies Expense

Insurance Expense                Utilities Expense

Interest Expense                   Utilities Payable