Garrett Wolfe Company has the following balances in selected accounts on December 31, 2012.

All the accounts have normal balances. The information below has been gathered at December 31, 2012.

1. Garrett Wolfe Company borrowed $10,000 by signing a 12%, one-year note on September 1, 2012.

2. A count of supplies on December 31, 2012, indicates that supplies of $900 are on hand.

3. Depreciation on the equipment for 2012 is $1,000.

4. Garrett Wolfe Company paid $2,100 for 12 months of insurance coverage on June 1, 2012.

5. On December 1, 2012, Garrett Wolfe collected $30,000 for consulting services to be performed from December 1, 2012, through March 31, 2013.

6. Garrett Wolfe performed consulting services for a client in December 2012. The client will be billed $4,200.

7. Garrett Wolfe Company pays its employees total salaries of $9,000 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 2012.

Instructions

Prepare adjusting entries for the seven items described above.