Reference no: EM13845897
Verne Cova Company has the following balances in selected accounts on December 31, 2017.
|
Accounts Receivable
|
$0
|
|
Accumulated Depreciation-Equipment
|
0
|
|
Equipment
|
7,000
|
|
Interest Payable
|
0
|
|
Notes Payable
|
11,000
|
|
Prepaid Insurance
|
2,820
|
|
Salaries and Wages Payable
|
0
|
|
Supplies
|
2,700
|
|
Unearned Service Revenue
|
31,200
|
All the accounts have normal balances. The information below has been gathered at December 31, 2017.
1. Verne Cova Company borrowed $10,500 by singing a 12%, one-year note on September 1, 2017.
2. A count of supplies on December 31, 2017, indicates that supplies of $850 are on hand.
3. Depreciation on the equipment for 2017 is $1,900.
4. Verne Cova Company paid $2,820 for 12 months of insurance coverage on June 1, 2017.
5. On December 1, 2017, Verne Cova collected $31,200 for consulting services to be performed form December 1, 2017, through March 31, 2018.
6. Verne Cova Company pays its employees total salaries of $5,500 every Monday for the preceding 5-day week (Monday through Friday). On Monday, December 29, employees were paid for the week ending December 26. All employees worked the last 3 days of 2017.
Prepare adjusting entries for the seven items described above.