Challenge Exercise 3-01 a-b (Part Level Submission) Craig Ferguson Company has the following balances in selected accounts on December 31, 2017. Accounts Receivable Accumulated Depreciation-Equipment 10,000 Interest Payable Notes Payable Prepaid Insurance Salaries and Wages Payable Supplies Unearned Service Revenue $-0- 20,000 2,700 3,500 50,000 All the accounts have normal balances. The information below has been gathered at December 31, 2017. 1, 2. 3. Craig Ferguson Company borrowed $20,000 by signing a 12%, one-year note on August 1, 2017. A count of supplies on December 31, 2017, indicates that supplies of $900 are on hand. Depreciation on the equipment for 2017 is $2,000. Craig Ferguson Company paid $2,700 for 12 months of insurance coverage on May 1, 2017. 5. On November 1, 2017, Craig Ferguson collected $50,000 for consulting services to be performed from November 1, 2017, through March 31, 2018 6. Craig Ferguson performed consulting services for a client in December 2017. The client will be billed $6,300 7. Craig Ferguson Company pays its employees total salaries of $13,000 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 2017. No. Account Titles and Explanation Debit 1. Interest Expense 1,000 Interest Payable 1,000 2. Supplies Expense 2,600 Supplies 2,600 3. Depreciation Expense 2,000 Accumulated Depreciation-Equipment 2,000 4. Insurance Expense 1,800 Prepaid Insurance 5. Unearned Service Revenue 20,000 Service Revenue 20,000 6. Accounts Receivable 6,300 Service Revenue 6,300 7. Salaries and Wages Expense 7,800 Salaries and Wages Payable 7,800 Your answer is partially correct. Try again. Prepare the 2018 entry for items 6 and 7. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) No. Account Titles and Explanation Debit Credit 6. Insurance Expense 6,300 Service Revenue 6,300 7 Salaries and wages Expense 7,800 Salaries and Wages Payable 7,800 14,100 14,100