Reference no: EM132740304

Hwang Ltd. has the following balances in selected accounts on December 31, 2017.

Accounts ReceivableNT     $ 0

Accumulated Depreciation-Equipment  0

Equipment        215,755

Interest Payable     0

Notes Payable       226,820

Prepaid Insurance     58,920

Salaries and Wages Payable    0

Supplies      77,036

Unearned Service Revenue     888,400

All the accounts have normal balances. The information below has been gathered at December 31, 2017.

1. Hwang borrowed NT$240,100 by signing a 6%, 1-year note on October 1, 2017.

2. A count of supplies on December 31, 2017, indicates that supplies of NT$28,334 are on hand.

3. Depreciation on the equipment for 2017 is NT$35,319.

4. Hwang paid NT$58,920 for 12 months of insurance coverage on June 1, 2017.

5. On December 1, 2017, Hwang collected NT$888,400 for consulting services to be performed from December 1, 2017, through March 31, 2018.

6. Hwang performed consulting services for a client in December 2017. The client will be billed NT$116,724.

7. Hwang pays its employees total salaries of NT$277,320 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.

Problem 1: Prepare annual adjusting entries for the seven items described above.