Verne Cova Company has the following balances in selected accounts on December 31, 2020.

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, 2020.

1. Verne Cova Company borrowed $10,000 by signing a 12%, one-year note on September 1, 2020.
2. A count of supplies on December 31, 2020, indicates that supplies of
   $900 are on hand.
3. Depreciation on the equipment for 2020 is $1,000.
4. Verne Cova Company paid $2,100 for 12 months of insurance coverage on June 1, 2020.
5. On December 1, 2020, Verne Cova collected $30,000 for consulting services to be performed from December 1, 2020, through March 31, 2021.
6. Verne Cova performed consulting services for a client in December 2020.
   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 2020.

Instructions

Prepare adjusting entries for the seven items described above.