Verne Cova Company has the following balances in selected accounts on December 31, 2015.

Accounts Receivable$ 0Accumulated DepreciationEquipment0Equipment7,412Interest Payable0Notes Payable10,257Prepaid Insurance2,100Salaries and Wages Payable0Supplies2,818Unearned Service Revenue40,768

All the accounts have normal balances. The information below has been gathered at December 31, 2015.

1.Verne Cova Company borrowed $10,125by signing a12%, one-year note on September 1, 2015.2.A count of supplies on December 31, 2015, indicates that supplies of $901are on hand.3.Depreciation on the equipment for 2015 is $1,315.4.Verne Cova Company paid $2,100for 12 months of insurance coverage on June 1, 2015.5.On December 1, 2015, Verne Cova collected $29,200for 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 client will be billed $3,674.7.Verne Cova Company pays its employees total salaries of $5,220every 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.