Prepare adjusting entries for the seven items described

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Reference no: EM13600922

Accounts Receivable $ -0-
Accumulated Depreciation-Equipment -0-
Equipment 7,000
Interest Payable -0-
Notes Payable 10,000
Prepaid Insurance 2,100
Salaries Payable -0-
Supplies 2,450

Unearned Consulting Revenue 40,000.All the accounts have normal balances. The information below has been gathered at December 31, 2010.

Instructions: Prepare adjusting entries for the seven items described below.Drew Carey Company borrowed $10,000 by signing a 12%, one-year note on September 1, 2010.A count of supplies on December 31, 2010, indicates that supplies of $800 are on hand.Depreciation on the equipment for 2010 is $1,000.Drew Carey Company paid $2,100 for 12 months of insurance coverage on June 1, 2010.On December 1, 2010, Drew Carey collected $40,000 for consulting services to be performed from December 1, 2010, through March 31, 2011.Drew Carey performed consulting services for a client in December 2010. The client will be billed $4,200.Drew Carey Company pays its employees total salaries of $9,000 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 2010.

Reference no: EM13600922

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