Craig Ferguson Company has the following balances in selected accounts on December 31, selected data. 2014.

Accounts Receivable $-0-

Accumulated DepreciationEquipment10,000

Interest Payable-0-

Notes Payable20,000

Prepaid Insurance2,700

Salaries and Wages Payable-0-

Supplies3,500

Unearned Service Revenue50,000

All the accounts have normal balances. The information below has been gathered at December 31, 2014.

1. Craig Ferguson Company borrowed $20,000 by signing a 12%, one-year note on August 1, 2014.

2. A count of supplies on December 31, 2014, indicates that supplies of $900 are on hand.

3. Depreciation on the equipment for 2014 is $2,000.

4. Craig Ferguson Company paid $2,700 for 12 months of insurance coverage on May 1, 2014.

5. On November 1, 2014, Craig Ferguson collected $50,000 for consulting services to be performed from November 1, 2014, through March 31, 2015.

6. Craig Ferguson performed consulting services for a client in December 2014. 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 2014.

Instructions: Prepare adjusting entries for the seven items described above.