Verne Cova Company has the following balances in selected accounts on December 31, 2017. Accounts Receivable $ 0 Accumulated DepreciationEquipment 0 Equipment 8,000 Interest Payable 0 Notes Payable 9,800 Prepaid Insurance 3,660 Salaries and Wages Payable 0 Supplies 2,600 Unearned Service Revenue 28,400 All the accounts have normal balances. The information below has been gathered at December 31, 2017. 1. Verne Cova Company borrowed $9,800 by signing a 12%, one-year note on September 1, 2017. 2. A count of supplies on December 31, 2017, indicates that supplies of $900 are on hand. 3. Depreciation on the equipment for 2017 is $1,500. 4. Verne Cova Company paid $3,660 for 12 months of insurance coverage on June 1, 2017. 5. On December 1, 2017, Verne Cova collected $28,400 for consulting services to be performed from December 1, 2017, through March 31, 2018. The company had performed 1/4 of the services by December 31. 6. Verne Cova performed consulting services for a client in December 2017. The client will be billed $4,500. 7. Verne Cova Company pays its employees total salaries of $9,500 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.

Prepare adjusting entries for the seven items described above.

No.	Account Titles and Explanation	Debit	Credit
1.
2.
3.
4.
5.
6.
7.