Question

Devin Wolf Company has the following balances in selected accounts on December 31, 2017.

Accounts Receivable		$ 0
Accumulated Depreciation—Equipment		0
Equipment		7,000
Interest Payable		0
Notes Payable		10,200
Prepaid Insurance		2,280
Salaries and Wages Payable		0
Supplies		2,200
Unearned Service Revenue		30,000

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

1.		Devin Wolf Company borrowed $10,200 by signing a 9%, one-year note on September 1, 2017.
2.		A count of supplies on December 31, 2017, indicates that supplies of $950 are on hand.
3.		Depreciation on the equipment for 2017 is $2,000.
4.		Devin Wolf Company paid $2,280 for 12 months of insurance coverage on June 1, 2017.
5.		On December 1, 2017, Devin Wolf collected $30,000 for consulting services to be performed from December 1, 2017, through March 31, 2018. The company had performed 1/4 of the services by December 31.
6.		Devin Wolf performed consulting services for a client in December 2017. The client will be billed $4,200.
7.		Devin Wolf Company pays its employees total salaries of $5,600 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.

Prepare adjusting entries for the seven items described above. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.)

No.	Account Titles and Explanation	Debit	Credit
1.
2.
3.
4.
5.
6.
7.

Answer 1

Date	Particulars	Debit($)	Credit($)
1	Interest exepense	306
	Interest payable		306
	(To record the interest exepense accrued)
2	Supplies expense	1250
	Supplies		1250
	(To record the supplies expense)
3	Depreciation expense	2000
	Accumulated Dep- Equipment		2000
	(To record the depreciation expense)
4	Insurance expense	1330
	Prepaid insurance		1330
	(To record the insurance amount prepaid)
5	Unearned service revenue	7500
	service revenue		7500
	(To record the revenue earned)
6	Accounts receivable	4200
	service revenue		4200
	(To record the revenue earned)
7	Salaries expense	3360
	salaries payable		3360
	(To record the salaries paid)