Exercise 36 Vaughn Weller DDS opened a dental practice on Ja

Exercise 3-6

Vaughn Weller, D.D.S., opened a dental practice on January 1, 2017. During the first month of operations, the following transactions occurred.

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 Expenses, and Utilities Payable. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select \"No entry\" for the account titles and enter 0 for the amounts.)

No.

Account Titles and Explanation

Debit

Credit

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Solution

No Title Debit Credit 1 Accounts receivable $     727 Service revenue $     727 (To record service performed but not yet billed) 2 Utilities expense $     485 Utilities payable $     485 (To record utilities expenses incurred but not yet paid) 3a Depreciation expense $     430 Accumulated depreciation - Equipment $     430 (To record depreciation expense) 3b Interest expense $     490 Interest payable $     490 (To record interest expense accrued) 4 Insurance expense ($11,160/12) $     930 Prepaid insurance $     930 (To record insurance expired) 5 Supplies expense ($1,743-$470) $ 1,273 Supplies $ 1,273 (To record supplies used)