Reference no: EM132569428
Question - Ivanhoe Company has the following balances in selected accounts on December 31, 2017. Ivanhoe has a calendar year end.
Accounts Receivable $0
Accumulated Depreciation-Equipment 0
Equipment 6,900
Interest Payable 0
Notes Payable 8,100
Prepaid Insurance 2,148
Salaries Payable 0
Supplies 2,520
Unearned Revenue 30,600
All the accounts have normal balances. The information below has been gathered at December 31, 2017.
1. Ivanhoe Company borrowed $8,100 by signing a 4%, one-year note on September 1, 2017.
2. A count of supplies on December 31, 2017, indicates that supplies of $950 are on hand.
3. Depreciation on the equipment for 2017 is $990.
4. Ivanhoe Company paid $2,148 for 12 months of insurance coverage on June 1, 2017.
5. On December 1, 2017, Ivanhoe collected $30,600 for consulting services to be performed evenly from December 1, 2017, through March 31, 2018.
6. Ivanhoe performed consulting services for a client in December 2017. The client will be billed $5,100. Payment from the customer is expected on January 15, 2018.
7. Ivanhoe Company pays its employees total salaries of $10,000 every Wednesday for the preceding five-day week (Monday through Friday). On Wednesday, January 3, 2018, employees were paid for the last five weekdays of 2017.
Required - Make adjusting entries for the seven items described above.