Prepare Journal Entry for the following

Catering Delight, Inc. is a catering company established by Sheila Davis. On January 1, the company was started with a $100,000 investment by the owner in exchange for common stock. During the month of January, the company engaged in the following transactions:

Jan 2, purchased a one-year insurance policy for $12,000 cash

Jan 5, purchased $2,000 of supplies on account

Jan 6, received $10,000 cash in advance to perform a catering job on Jan 20th

Jan 7, purchased $30,000 of computer equipment by paying $3,000 cash and signing a note payable for the balance. Straight-line depreciation is used for the equipment, and the equipment is expected to last 5 years with zero salvage value. The note payable is a 6- month note with interest at 5% per year.

At the end of the month, the owner prepared the following adjustments and accruals:

Jan 31, adjusted the prepaid insurance account

Jan 31, counted the supplies and noted that $1,500 supplies were on hand

Jan 31, prepare a journal entry to reflect that the unearned revenue received on Jan 6th had been earned

Jan 31, recorded the depreciation on the computer equipment

Jan 31, recorded the interest due on the note payable

Jan 31, is a Thursday and the employees are paid on Friday. The owner has three employees who are paid $800 each for a 5-day work week.