Evan Watts opened a dental practice on January 1 2017 During

Evan Watts opened a dental practice on January 1, 2017. During the first month of operations, the following transactions occurred.

1.		Watts performed services for patients totalling $2,170. These services have not yet been recorded.
2.		Utility expenses incurred but not paid prior to January 31 totalled $390.
3.		Purchased dental equipment on January 1 for $76,000, paying $18,400 in cash and signing a $57,600, three-year note payable. The equipment depreciates $400 per month. Interest is $490 per month.
4.		Purchased a one-year malpractice insurance policy on January 1 for $11,400.
5.		Purchased $2,440 of dental supplies. On January 31, determined that $950 of supplies were on hand.

Solution

journal Entries

date

explanation

debit

credit

1-

cash

2170

service fees revenue

2170

2-

utility expense

utility bill payable

3-

equipment

76000

cash

18400

notes payable

57600

4-

depreciation expense

400

accumulated depreciation

400

5-

interest expense

490

interest payable

490

6-

prepaid insurance expense

11400

cash

11400

7-

interest expense

950

prepaid insurance expense

950

8-

supplies

2440

cash

2440

9-

supplies expense

1490

supplies

1490

journal Entries
date	explanation	debit	credit
1-	cash	2170
	service fees revenue		2170
2-	utility expense
	utility bill payable
3-	equipment	76000
	cash		18400
	notes payable		57600
4-	depreciation expense	400
	accumulated depreciation		400
5-	interest expense	490
	interest payable		490
6-	prepaid insurance expense	11400
	cash		11400
7-	interest expense	950
	prepaid insurance expense		950
8-	supplies	2440
	cash		2440
9-	supplies expense	1490
	supplies		1490