E\#1 LOCKFREE COMPANY has the following balances in selected accounts on December 31,2011 All the accounts have normal balances. The information below has been gathered as of December 31, 2011. 1. LockFree Company borrowed $20,000 by signing a 12%, one-year note on September 1,2011 . 2. A count of supplies on December 31,2011 , indicates that supplies of $700 are on hand. 3. Equipment was purchased on January 1,2009 for $70,000. The useful life is for ten years. Depreciation is booked annually. 4. LockFree Company paid $2,640 for 12 months of insurance coverage on June 1, 2011 . 5. On December 1, 2011, LockFree collected $40,000 for consulting services to be performed from December 1, 2011, through April 30, 2012. Assume an equal amount is earned for each month. 6. LockFree performed consulting services for a client in December 2011. The client will be billed $4,600. 7. LockFree Company pays its employees total salaries of $10,000 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 2011