Reference no: EM132614676

Hwang Ltd. has the following balances in selected accounts on December 31, 2017.

Accounts Receivable NT$ -0-

Accumulated Depreciation-Equipment -0-

Equipment 210,000

Interest Payable -0-

Notes Payable 240,000

Prepaid Insurance 63,100

Salaries and Wages Payable -0-

Supplies 73,500

Unearned Service Revenue 900,00

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

1. Hwang borrowed NT$240,000 by signing a 6%, 1-year note on October 1, 2017.

2. A count of supplies on December 31, 2017, indicates that supplies of NT$23,400 are on hand.

3. Depreciation on the equipment for 2017 is NT$30,000.

4. Hwang paid NT$63,000 for 12 months of insurance coverage on June 1, 2017.

5. On December 1, 2017, Hwang collected NT$900,000 for consulting services to be per-formed from December 1, 2017, through March 31, 2018.

6. Hwang performed consulting services for a client in December 2017. The client will be billed NT$117,000.

7. Hwang pays its employees total salaries of NT$270,000 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 2017.

Instructions

Question 1: Prepare annual adjusting entries for the seven items described above.