E3.6 (LO 2, 3), AN Verne Cova Company has the following balances in selected accounts on December 31, 2022.Accounts Receivable$-0-Accumulated Depreciation-EquipmentEquipmentInterest Payable-0-7,000-0-Notes Payable10,000Prepaid Insurance2,100Salaries and Wages Payable-0Supplies2,450Unearned Service Revenue30,000All 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 whenthe 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 throughFriday). On Monday, December 29, employees were paid for the week ending December 26. All employees worked the lastdays of 2022.InstructionsPrepare the adjusting entries on December 31st for the seven items described above. Verne Cova prepares adjustments annually.General JournalTrans #AccountDebitCredit1.2.3.4.5.6.7.

E3.6 (LO 2, 3), AN Verne Cova Company has the following balances in selected accounts on December 31, 2022. Accounts Receivable $-0- Accumulated Depreciation-Equipment Equipment Interest Payable Notes Payable Prepaid Insurance Salaries and Wages Payable Supplies -0- 7,000 -0- 10,000 2,100 -0- 2,450 Unearned Service Revenue 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 wil the note is repaid.

E3.6 (LO 2, 3), AN Verne Cova Company has the following balances in selected accounts on December 31, 2022. Accounts Receivable $-0- Accumulated Depreciation-Equipment Equipment Interest Payable Notes Payable Prepaid Insurance Salaries and Wages Payable Supplies -0- 7,000 -0- 10,000 2,100 -0- 2,450 Unearned Service Revenue 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 wil the note is repaid.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Required Information [The following information applies to the questions displayed below.] On January 1, 2021, the general ledger of ACME Fireworks includes the following sccount balances: Accounts Debit Credit $ 27,100 Cash Accounts Receivable Allowance for Uncollectible Accounts Inventory Land Equipnent Accumulated Depreciation Accounts Payable Notes Payable (6%, due April 1, 2822) 5e, 200 $ 6,200 22, B00 66, 800 25, e00 3,5ee 30,5ee 70, e00 55,e00 25,100 Common Stock Retained Earnings Totals $190,300 $198,300 During January 2021, the following transactions occur: January 2 Sold gift cards totaling $12,e0e. The cards are redeenable for merchandise within one year of the purchase date. January 6 Purchase additional inventory on account, $167,88e. January 15 Firework sales for the first half of the month total $155,e0e. All of these sales are on account. The cost of the units sold is $83,88e. January 23 Receive $127,480 from custoners on accounts receivable. January 25 Pay $11e,eee to…
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