Prepare adjusting entries for the seven items described below. 1. Drew Carey Com
ID: 2388502 • Letter: P
Question
Prepare adjusting entries for the seven items described below.
1. Drew Carey Company borrowed $15,000 by signing a 13%, one-year note on September 1, 2010.
2. A count of supplies on December 31, 2010, indicates that supplies of $703 are on hand.
3. Depreciation on the equipment for 2010 is $1,349.
4. Drew Carey Company paid $7,788 for 12 months of insurance coverage on June 1, 2010.
5. On December 1, 2010, Drew Carey collected $44,516 for consulting services to be performed from December 1, 2010, through March 31, 2011.
6. Drew Carey performed consulting services for a client in December 2010. The client will be billed $4,020.
7. Drew Carey Company pays its employees total salaries of $8,550 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 2010.
Explanation / Answer
its correct.