Current Attempt in Progress Novak Company has the following balances in selected accounts on December 31, 2020. Accounts Receivable Accumulated Depreciation-Equipment Interest Payable Notes Payable Prepaid Insurance Salaries and Wages Payable Supplies Unearned Service Revenue 1. 2. 3. 4. 5. 6. 7. All the accounts have normal balances. The information below has been gathered at December 31, 2020. (a) (b) * Your answer is incorrect. No. Account Titles and Explanation 6. 7. Interest Expense Novak Company borrowed $17,000 by signing a 12%, one-year note on August 1, 2020. A count of supplies on December 31, 2020, indicates that supplies of $860 are on hand Depreciation on the equipment for 2020 is $2,000. Novak Company paid $2,640 for 12 months of insurance coverage on May 1, 2020. On November 1, 2020, Novak collected $47,000 for consulting services to be performed from November 1, 2020, through March 31, 2021 Supplies Expense $0 Insurance Expense 10,000 Novak performed consulting services for a client in December 2020. The client will be billed $6,800. Novak 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 2020. Service Revenue 0 Prepare the entry the company would make related to item 6 in 2021 when the client pays the bill and the entry the company would make in 2021 when it pays its employees. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. List all debit entries before credit entries.) Salaries and Wages Expense 17,000 eTextbook and Media 2,640 0 3,300 47,000

Debit 850 2440 1760 18800 7800 Credit 10000 Assistance Used

Current Attempt in Progress Novak Company has the following balances in selected accounts on December 31, 2020. All the accounts have normal balances. The information below has been gathered at December 31, 2020. 1. Novak Company borrowed $17,000 by signing a 12%, one-year note on August 1,2020 . 2. A count of supplies on December 31,2020 , indicates that supplies of $860 are on hand 3. Depreciation on the equipment for 2020 is $2,000. 4. Novak Company paid $2,640 for 12 months of insurance coverage on May 1, 2020. 5. On November 1,2020, Novak collected $47,000 for consulting services to be performed from November 1,2020 , through March 31, 2021 6. Novak performed consulting services for a client in December 2020. The client will be billed $6,800. 7. Novak 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 2020. (a). (b) Prepare the entry the company would make related to item 6 in 2021 when the client pays the bill and the entry the company would make in 2021 when it pays its employees. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounks, List all debit entries before creditentries.) 1. Interest Expense 850 Interest Payable 850 2. Supplies Expense 2440 Supplies 3. Depreciation Expense Accumulated Depreciation-Equipment 4. Insurance Expense 1760 Prepaid insurance 5. Unearned Service Revenue 18800 1760 Service Revenue 18800 6. Accounts Receivable 6800 Service Revenue 7. Salaries and Wages Expense 7800 6800 Salaries and Wages Payable 7800 Prepare the entry the company would make related to item 6 in 2021 when the client pays the bill would make in 2021 when it pays its employees. (Credit account titles are automatically indented whe indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amoun credit entries.)