E3.5(LO 2,3)Hwang Ltd. has the following balances in selected accounts on December 31, 2020.

Prepare adjusting entries from selected data.

Accounts ReceivableNT$-0-

Accumulated DepreciationEquipment-0-

Equipment7,000

Interest Payable-0-

Notes Payable10,000

Prepaid Insurance2,100

Salaries and Wages Payable-0-

Supplies2,450

Unearned Service Revenue32,000

All the accounts have normal balances. The information below has been gathered at December 31, 2020.

• 1.Hwang borrowed NT$10,000 by signing a 9%, oneyear note on September 1, 2020.
• 2.A count of supplies on December 31, 2020, indicates that supplies of NT$900 are on hand.
• 3.Depreciation on the equipment for 2020 is NT$1,000.
• 4.Hwang paid NT$2,100 for 12 months of insurance coverage on June 1, 2020.
• 5.On December 1, 2020, Hwang collected NT$32,000 for consulting services to be performed from December 1, 2020, through March 31, 2021.
• 6.Hwang performed consulting services for a client in December 2020. The client will be billed NT$4,200.
• 7.Hwang pays its employees total salaries of NT$9,000 every Monday for the preceding 5day 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.

Instructions

Prepare annual adjusting entries for the seven items described above.