Exercise 3-05 (Video)

Devin Wolf Company has the following balances in selected accounts on December 31, 2020.

Accounts Receivable$ 0Accumulated DepreciationEquipment0Equipment7,000Interest Payable0Notes Payable10,000Prepaid Insurance2,100Salaries and Wages Payable0Supplies2,450Unearned Service Revenue32,000

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

1.Devin Wolf Company borrowed $10,000by signing a9%, one-year note on September 1, 2020.2.A count of supplies on December 31, 2020, indicates that supplies of $900are on hand.3.Depreciation on the equipment for 2020 is $1,000.4.Devin Wolf Company paid $2,100for 12 months of insurance coverage on June 1, 2020.5.On December 1, 2020, Devin Wolf collected $32,000for consulting services to be performed from December 1, 2020, through March 31, 2021. The company had performed 1/4 of the services by December 31.6.Devin Wolf performed consulting services for a client in December 2020. The client will be billed $4,200.7.Devin Wolf Company pays its employees total salaries of $9,000every 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.

please make adjusting entries for the seven items described above.(Credit account titles are automatically indented when the amount is entered. Do not indent manually.)

No.

Account Titles and Explanation

Debit

Credit

1.

2.

3.

4.

5.

6.

7.