E3-4BRyan Stiles Company has the following balances in selected accounts on December 31,2008.Accounts Receivable$ -0-Accumulated DepreciationEquipment-0-Equipment7,000Interest Payable-0-Notes Payable25,000Prepaid Insurance2,520Salaries Payable-0-Supplies2,650Unearned Consulting Revenue40,000All the accounts have normal balances. The information below has been gathered at December31, 2008.1.Ryan Stiles Company borrowed $25,000 by signing a 12%, one-year note on October 1, 2008.2.A count of supplies on December 31, 2008, indicates that supplies of $700 are on hand.3.Depreciation on the equipment for 2008 is $2,000.4.Ryan Stiles Company paid $2,520 for 12 months of insurance coverage on August 1, 2008.5.On December 1, 2008, Ryan Stiles collected $50,000 for consulting services to be performedfrom December 1, 2008, through March 31, 200