Verne Cova Company has the following balances in selected accounts on December 31, 2015. LIST OT Accounts $0 0 6.055 0 Exercise 3-5 Accounts Receivable Accumulated Deprecation-Equipment Equipment Interest Payable Notes Payable Prepaid Insurance Salanes and Wages Payable Supplies Uneared Service Revenue 10,950 2.340 0 2.251 38,736 All the accounts have normal balances. The information below has been gathered at December 31, 2015 1. Verne Cova Company borrowed 59,850 by signing a 12%, one-year note on September 1, 2015, 2. A count of supplies on December 31, 2015, indicates that supplies of $917 are on hand. 3. Depreciation on the equipment for 2015 is $1,078. 4. Verne Cova Company paid $2,340 for 12 months of insurance coverage on June 1, 2015 5. On December 1, 2015, Veme Cova colected $28,800 for consulting services to be performed from December 1, 2015, through March 31, 2016 6. Verne Cova performed consulting services for a client in December 2015. The dient will be biled $3,962. 7. Verne Cova Company pays ts employees total salanes of 5 280 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 2015. Prepare adjusting entries for the seven items described above. (Credit account titles are aute No. Account Titles and Explanation Credit Debit 1. Accounts Payable Accounts Receivable Accumulated Depreciation-Buildings Accumulated Depreciation-Equipment Advertising Expense Buildings Cash Common Stock Depreciation Expense Dividends Equipment Insurance Expense Interest Expense Interest Payable Land Maintenance and Repairs Expense Mortgage Payable Notes Payable Prepaid Advertising Prepaid Insurance Prepaid Rent Rent Expense Rent Revenue Retained Earnings Salaries and Wages Expense Salaries and Wages Payable Sales Revenue Service Revenue Supplies Supplies Expense Unearned Rent Revenue Unearned Service Revenue Utilities Expense 2. 3. 4. 5. 6. 7