Cheyenne Corp. has the following balances in selected accounts on December 31, 2019. Accounts Receivable $0
Accumulated Depreciation Equipment 0
Equipment 6,000
Interest Payable 0
Notes Payable 10,100
Prepaid Insurance 3,780
Salaries and Wages Payable 0
Supplies 2,800
Unearned Service Revenue 32,400
All the accounts have normal balances. The information below has been gathered at December 31, 2019. 1.
1. Cheyenne Corp. borrowed $10,100 by signing a 12%, one-year note on September 1, 2019.
2. A count of supplies on December 31, 2019, indicates that supplies of $950 are on hand.
3. Depreciation on the equipment for 2019 is $1,500.
4. Cheyenne Corp. paid $3,780 for 12 months of insurance coverage on June 1, 2019.
5. On December 1, 2019, Cheyenne Corp. collected $32,400 for consulting services to be performed from December 1, 2019, through March 31, 2020.
6. Cheyenne Corp. performed consulting services for a client in December 2019. The client will be billed $4,000.
7. Cheyenne Corp. pays its employees total salaries of $7,000 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 2019.
Prepare adjusting entries for the seven items described above.