Exercise 3-5 Verne Cova Company has the following balances in selected accounts on December 31, 2017. $0 6,000 Accounts Receivable Accumulated Depreciation-Equipment Equipment Interest Payable Notes Payable Prepaid Insurance Salaries and Wages Payable Supplies Uneamed Service Revenue 9.800 2,100 2,000 28,000 All the accounts have normal balances. The information below has been gathered at December 31, 2017. 1. 2. 3. 4. 5. Verne Cova Company borrowed $9,800 by signing a 12%, one year note on September 1, 2017 A count of supplies on December 31, 2017, indicates that supplies of $800 are on hand. Depreciation on the equipment for 2017 is $1,000. Verne Cova Company paid $2,100 for 12 months of insurance coverage on June 1, 2017 On December 1, 2017, Verne Cova collected $28,000 for consulting services to be performed from December 1, 2017, through March 31, 2018. The company had performed 1/4 of the services by December 31. Veme Cova performed consulting services for a client in December 2017. The client will be billed $3,500. Verne Cova Company pays its employees total salaries of $5,000 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 2017. 6. 7. Prepare 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 Tities and Explanation Debit Credit No. Account Tities and Explanation described above. (Credit account titles are automatically indented when the amount i Debit Credit nte Do not indent manually)