Practice Cases RSC has the following balances in selected accounts on December 31, 2020. Equipment $ 7,000 Notes Payable 25,000 Prepaid Insurance 2,520 Supplies 2,650 Unearned Consulting Revenue 40,000 All the accounts have normal balances. The information below has been gathered on December 31. 1. RSC borrowed $25,000 by signing a 12%, one-year note on October 1, 2020. 2. A count of supplies on December 31, 2020, indicates that supplies of $700 are on hand. 3. Depreciation on the equipment for 2020 is $2,000. 4. RSC paid $2,520 for 12 months of insurance coverage on August 1, 2020. 5. On December 1, 2020, RSC collected $50,000 for consulting services to be performed from December 1, 2020, through March 31, 2021. 6. RSC performed services for a client in December 2020. The client will be billed $5,300. 7. RSC pays its employees total salaries of $10,000 every Monday for the preceding 5-day week (Monday through Friday). On Monday, December 30, employees were paid for the week ending December 27. All employees worked the last 2 days of 2020. Instructions: Prepare adjusting entries for the seven items described above.