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 ................................................ 10,000

Prepaid Insurance .........................................    2,100

Salaries and Wages Payable ..........................       –0–

Supplies ..........................................................     2,450

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 $10,000 by signing a 9%, one-year note on September 1, 2017.

2. A count of supplies on December 31, 2017, indicates that supplies of $900 are on hand.

3. Depreciation on the equipment for 2017 is $1,000.

4. Devin Wolf Company paid $2,100 for 12 months of insurance coverage on June 1, 2017.

5. On December 1, 2017, Devin Wolf collected $32,000 for consulting services to be performed from December 1, 2017, through March 31, 2018.

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 $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 2017.

Instructions

Prepare adjusting entries for the seven items described above.