All the accounts have normal balances. The information below has been gathered at December 31, 2017.
1. Verne Cova Company borrowed $9,800 by signing a 12%, one-year note on September 1, 2017.
2. A count of supplies on December 31, 2017, indicates that supplies of $800.
3. Depreciation on the equipment for 2015 is $1,000.
4. Verne Cova Company paid $2,100 for 12 months of insurance coverage on June 1, 2015.
5. On December 1, 2015, Verne Cova collected $30,000 for consulting services to be performed from December 1, 2015, through March 31, 2016.
6. Verne Cova performed consulting services for a client in December 2015. The client will be billed $4,200.
7. Verne Cova 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 2015.
Prepare adjusting entries for the seven items described above.
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All the accounts have normal balances. The information below has been gathered at December 31, 2017....
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