Question 1. Wow Advertising Company's trial balance at December 31 shows Supplies 6,700 and Supplies Expense 0. On December 31, there are 1,300 of supplies on hand.

Prepare the adjusting entry at December 31 and, using T-accounts, enter the balances in the accounts, post the adjusting entry, and indicate the adjusted balance in each account.

Question 2. At the end of its first year, the trial balance of Zovde Company OAO shows Equipment 32,000 and zero balances in Accumulated DepreciationEquipment and Depreciation Expense. Depreciation for the year is estimated to be 6,000. Prepare the adjusting entry for depreciation at December 31, post the adjustments to T-accounts, and indicate the statement of financial position presentation of the equipment at December 31.

Question 3 Hwang Ltd. has the following balances in selected accounts on December 31, 2017.

Accounts ReceivableNT$ -0-

Accumulated DepreciationEquipment-0-

Equipment210,000

Interest Payable-0-

Notes Payable240,000

Prepaid Insurance 63,100

Salaries and Wages Payable-0-

Supplies 73,500

Unearned Service Revenue900,00

All the accounts have normal balances. The information below has been gathered at December 31, 2017.

1. Hwang borrowed NT$240,000 by signing a 6%, 1-year note on October 1, 2017.

2. A count of supplies on December 31, 2017, indicates that supplies of NT$23,400 are on hand.

3. Depreciation on the equipment for 2017 is NT$30,000.

4. Hwang paid NT$63,000 for 12 months of insurance coverage on June 1, 2017.

5. On December 1, 2017, Hwang collected NT$900,000 for consulting services to be per-formedfrom December 1, 2017, through March 31, 2018.

6. Hwang performed consulting services for a client in December 2017. The client will be billed NT$117,000.

7. Hwang pays its employees total salaries of NT$270,000 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.

Instructions

Prepare annual adjusting entries for the seven items described above.