Reference no: EM132495724

Question - Devin Wolf Company has the following balances in selected accounts on December 31, 2017.

Accounts Receivable $0

Accumulated Depreciation-Equipment 0

Equipment 8,000

Interest Payable 0

Notes Payable 10,100

Prepaid Insurance 2,220

Salaries and Wages Payable 0

Supplies 2,900

Unearned Service Revenue 32,000

All the accounts have normal balances. The Information below has been gathered at December 31, 2017.

1. Devin Wolf Company borrowed $10,100 by signing a 9%, one-year note on September 1, 2017.

2. A count of supplies on December 31, 2017, indicates that supplies of $980 are on hand.

3. Depreciation on the equipment for 2017 is $1,500.

4. Devin Wolf Company paid $2,220 for 12 months of insurance coverage on June 1, 2017.

5. On December 1, 2017, Devin Wolf collected $32,000 for consulting services to be performed from December 1, 2017, through March 31, 2018. The company had performed 1/4 of the services by December 31.

6. Devin Wolf performed consulting services for a client in December 2017. The client will be billed $3,600.

7. Devin Wolf Company pays its employees total salaries of $5,200 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.

Required - Prepare adjusting entries for the seven items described above.