Drew Carey Company has the following balances in selected accounts on December 31, 2011.
Accounts Receivable $ -0-
Accumulated Depreciation-Equipment -0-
Equipment 4,880
Interest Payable -0-
Notes Payable 14,800
Prepaid Insurance 2,208
Salaries Payable -0-
Supplies 2,918
Unearned Consulting Revenue 40,000
All the accounts have normal balances. The information below has been gathered at December 31, 2011.
Prepare adjusting entries for the seven items described below.
1.Drew Carey Company borrowed $14,800 by signing a 12%, one-year note on September 1, 2011.
2.A count of supplies on December 31, 2011, indicates that supplies of $850 are on hand.
3.Depreciation on the equipment for 2011 is $1,220.
4.Drew Carey Company paid $2,208 for 12 months of insurance coverage on June 1, 2011.
5.On December 1, 2011, Drew Carey collected $40,000 for consulting services to be performed from 6.December 1, 2011, through March 31, 2012.
7.Drew Carey performed consulting services for a client in December 2011. The client will be billed $3,920.
Drew Carey Company pays its employees total salaries of $8,905 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 2011.
Accounts Receivable $ -0-
Accumulated Depreciation-Equipment -0-
Equipment 4,880
Interest Payable -0-
Notes Payable 14,800
Prepaid Insurance 2,208
Salaries Payable -0-
Supplies 2,918
Unearned Consulting Revenue 40,000
All the accounts have normal balances. The information below has been gathered at December 31, 2011.
Prepare adjusting entries for the seven items described below.
1.Drew Carey Company borrowed $14,800 by signing a 12%, one-year note on September 1, 2011.
2.A count of supplies on December 31, 2011, indicates that supplies of $850 are on hand.
3.Depreciation on the equipment for 2011 is $1,220.
4.Drew Carey Company paid $2,208 for 12 months of insurance coverage on June 1, 2011.
5.On December 1, 2011, Drew Carey collected $40,000 for consulting services to be performed from 6.December 1, 2011, through March 31, 2012.
7.Drew Carey performed consulting services for a client in December 2011. The client will be billed $3,920.
Drew Carey Company pays its employees total salaries of $8,905 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 2011.