Reference no: EM132744301
Question - Hwang Ltd. has the following balances in selected accounts on December 31, 2017.
Accounts Receivable NT $0
Accumulated Depreciation-Equipment 0
Equipment 215,755
Interest Payable 0
Notes Payable 226,820
Prepaid Insurance 58,920
Salaries and Wages Payable 0
Supplies 77,036
Unearned Service Revenue 888,400
All the accounts have normal balances. The information below has been gathered at December 31, 2017.
1. Hwang borrowed NT$240,100 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$28,334 are on hand.
3. Depreciation on the equipment for 2017 is NT$35,319.
4. Hwang paid NT$58,920 for 12 months of insurance coverage on June 1, 2017.
5. On December 1, 2017, Hwang collected NT$888,400 for consulting services to be performed 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$116,724.
7. Hwang pays its employees total salaries of NT$277,320 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 annual adjusting entries for the seven items described above.
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