Reference no: EM132462152

New Slang Pest Control has the following balances in selected accounts on December 31, 2019.

Accounts Receivable                                  $ 0

Accumulated Depreciation - Equipment            0

Equipment                                             6,650

Interest Payable                                           0

Notes Payable                                       15,000

Prepaid Insurance                                    2,220

Salaries and Wages Payable                            0

Supplies                                                 2,940

Unearned Service Revenue                       30,000

All of the accounts have normal balances. The information below has been gathered at December 31, 2019.

Point 1. Depreciation on the equipment for 2019 is $1,300.

Point 2. New Slang Pest Control borrowed $15,000 by signing a 10%, one-year note on July 1, 2019. (6 mo)

Point 3. New Slang Pest Control paid $2,220 for 12 months of insurance coverage on October 1, 2019. (3 mo)

Point 4. New Slang Pest Control pays its employees total salaries of $11,000 every Monday for the preceding 5-day week (Monday-Friday). All employees were owed for three days at December 31, 2019, but will not be paid until Monday, Jan. 3, 2020.

Point 5. New Slang Pest Control performed disinfecting services for a client in December 2019. The client will be billed $3,200.

Point 6. On December 1, 2019, New Slang Pest Control collected $30,000 in advance for disinfecting processes to be performed from December 1, 2019, through May 31, 2020. make an adjusting entry at December 31, 2019.

Point 7. A count of supplies on December 31, 2019, indicates that supplies of $650 are on hand.

Instructions

Problem 1: Prepare in journal form the adjusting entries for the seven items listed for New Slang Pest Control.