Prepare adjusting entries from selected data. (LO 2,3) E3-4B Shellhammer Company has the following balances in selected accounts on Decem. ber 31, 2017 Accounts Receivable S -0- Accumulated Depreciation Equipment Equipment 7.000 Interest Payable Notes Payable 25.000 Prepaid Insurance 2.520 Salaries and Wages Payable -0- Supplies 2.650 Uneamed Service Revenue 50.000 0- All the accounts have normal balances. The information below has been gathered at December 31, 2017. 1. Shellhammer Company borrowed $30,000 by signing a 12%, one-year note on October 1, 2017. 2 3 Adjusting the Accounts 2. A count of supplies on December 31, 2017, indicates that supplies of $700 are on hand. 3. Depreciation on the equipment for 2017 is $2,000. 4. Shellhammer Company paid $2,520 for 12 months of insurance coverage on August 1, 2017. 5. On December 1, 2017, Shellhammer collected $50,000 for consulting services to be performed from December 1, 2017, through March 31, 2018 6. Shellhammer performed consulting services for a client in December 2017. The client will be billed $5,300. 7. Shellhammer Company pays its employees total salaries of $12,000 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 2017. Instructions Prepare adjusting entries for the seven items described above