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Test 2 - Question 1 Correct Andy Wright,D.D.S opened a...

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Question 1
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Correct. Andy Wright,D.D.S., opened a dental practice on January 1, 2008. During the first month of operations the following transactions occurred. 1. Performed services for patients who had dental plan insurance. At January 31, $760 of such services was earned but not yet recorded. 2. Utility expenses incurred but not paid prior to January 31 totaled $550. 3. Purchased dental equipment on January 1 for $80,000, paying $20,000 in cash and signing a $60,000, 3-year note payable. The equipment depreciates $340 per month. Interest is $540 per month. 4. Purchased a one-year malpractice insurance policy on January 1 for $9,000. 5. Purchased $2,000 of dental supplies. On January 31, determined that $290 of supplies were on hand. Instructions Prepare the adjusting entries on January 31. Date Description/Account Debit Credit 1. Jan.31 Accounts Receivable 760 Service Revenue 760 2. Jan. 31 Utilities Expense 550 Utilities Payable 550 3. Jan. 31 Depreciation Expense 340 Accum. Deprec.-Dental Equipment 340 (To record depreciation.) Jan. 31 Interest Expense 540 Interest Payable 540 4. Jan. 31
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