All the accounts have normal balances. The information below has been gathered at December 31, 2027. Interest will be paid whenthe note is repaid.1.Devin Wolf Company borrowed $10,000 by signing a 9%, one-year note on September 1, 2027.2.3.4.5.A count of supplies on December 31, 2027, indicates that supplies of $900 are on hand.Depreciation on the equipment for 2027 is $1,000.Devin Wolf paid $2,100 for 12 months of insurance coverage on June 1, 2027.On December 1, 2027, Devin Wolf collected $32,000 for consulting services to be performed evenly from December 1, 2027,through March 31, 2028.6.Devin Wolf performed consulting services for a client in December 2027. The client will be billed $4,200.7.Devin Wolf 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 of2027.Prepare adjusting entries for the seven items described above. Devin Wolf prepares adjustments annually. (List all debit entries beforecredit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually.)

Below are the adjusting entries for each of the items described. Each entry includes the debit and…

Answered: All the accounts have normal balances.…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter13: Long-term Liabilities

Section: Chapter Questions

Problem 1PA: On January 1, 2018, King Inc. borrowed $150,000 and signed a 5-year, note payable with a 10%...

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