E3.6 (LO 2, 3), AN Verne Cova Company has the following balances in selected accounts on December 31, 2022. Accounts Receivable Accumulated Depreciation-Equipment Equipment Interest Payable Notes Payable Prepaid Insurance Salaries and Wages Payable Supplies Unearned Service Revenue $ -0- -0- 7,000 -0- 10,000 2,100 -0- 2,450 30,000 All the accounts have normal balances. The following information has been gathered at December 31, 2022. 1. Verne Cova Company borrowed $10,000 by signing a 12%, 1-year note on September 1, 2022. Interest will be paid when the note is repaid. 2. A count of supplies on December 31, 2022, indicates that supplies of $900 are on hand. 3. Depreciation on the equipment for 2022 is $1,000. 4. Verne Cova paid $2,100 for 12 months of insurance coverage on June 1, 2022. 5. On December 1, 2022, Verne Cova collected $30,000 for consulting services to be performed evenly from December 1, 2022, through March 31, 2023. 6. Verne Cova performed consulting services for a client in December 2022. The client will be billed $4,200. 7. Verne Cova 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 2022. Instructions Prepare adjusting entries for the seven items described above. Verne Cova prepares adjustments annually.
E3.6 (LO 2, 3), AN Verne Cova Company has the following balances in selected accounts on December 31, 2022. Accounts Receivable Accumulated Depreciation-Equipment Equipment Interest Payable Notes Payable Prepaid Insurance Salaries and Wages Payable Supplies Unearned Service Revenue $ -0- -0- 7,000 -0- 10,000 2,100 -0- 2,450 30,000 All the accounts have normal balances. The following information has been gathered at December 31, 2022. 1. Verne Cova Company borrowed $10,000 by signing a 12%, 1-year note on September 1, 2022. Interest will be paid when the note is repaid. 2. A count of supplies on December 31, 2022, indicates that supplies of $900 are on hand. 3. Depreciation on the equipment for 2022 is $1,000. 4. Verne Cova paid $2,100 for 12 months of insurance coverage on June 1, 2022. 5. On December 1, 2022, Verne Cova collected $30,000 for consulting services to be performed evenly from December 1, 2022, through March 31, 2023. 6. Verne Cova performed consulting services for a client in December 2022. The client will be billed $4,200. 7. Verne Cova 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 2022. Instructions Prepare adjusting entries for the seven items described above. Verne Cova prepares adjustments annually.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:E3.6 (LO 2, 3), AN Verne Cova Company has the following balances in selected accounts on December 31, 2022.
Accounts Receivable
Accumulated Depreciation-Equipment
Equipment
Interest Payable
Notes Payable
Prepaid Insurance
Salaries and Wages Payable
Supplies
Unearned Service Revenue
Prepare adjusting entries for the seven items described above. Verne Cova prepares adjustments annually.
Identify types of adjustments and accounts before adjustment.
$
December 21
-0-
-0-
7,000
-0-
10,000
2,100
-0-
2,450
30,000
All the accounts have normal balances. The following information has been gathered at December 31, 2022.
1. Verne Cova Company borrowed $10,000 by signing a 12%, 1-year note on September 1, 2022. Interest will be paid when the note is repaid.
2. A count of supplies on December 31, 2022, indicates that supplies of $900 are on hand.
3. Depreciation on the equipment for 2022 is $1,000.
4. Verne Cova paid $2,100 for 12 months of insurance coverage on June 1, 2022.
5. On December 1, 2022, Verne Cova collected $30,000 for consulting services to be performed evenly from December 1, 2022, through March 31, 2023.
6. Verne Cova performed consulting services for a client in December 2022. The client will be billed $4,200.
7. Verne Cova 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 2022.
Instructions
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