Reference no: EM133092267

Question - Oriole Company has the following balances in selected accounts on December 31, 2022.

Accounts Receivable $0

Accumulated Depreciation-Equipment 0

Equipment 7,000

Interest Payable 0

Notes Payable 11,000

Prepaid Insurance 4,080

Salaries and Wages Payable 0

Supplies 2,900

Unearned Service Revenue 31,000

All the accounts have normal balances. The information below has been gathered at December 31, 2022. Interest will be paid when the note is repaid.

1. Oriole Company borrowed $9,000 by signing a 9%, one-year note on September 1, 2022.

2. A count of supplies on December 31, 2022, indicates that supplies of $970 are on hand.

3. Depreciation on the equipment for 2022 is $1,800.

4. Oriole paid $4,080 for 12 months of insurance coverage on June 1, 2022.

5. On December 1, 2022, Oriole collected $31,000 for consulting services to be performed evenly from December 1, 2022, through March 31, 2023.

6. Oriole performed consulting services for a client in December 2022. The client will be billed $3,800.

7. Oriole 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 2022.

Required - Prepare adjusting entries for the seven items described above. Devin Wolf prepares adjustments annually.