Reference no: EM132554794

Wildhorse Co. has the following balances in selected accounts on December 31, 2017. Wildhorse has a calendar year end.

Accounts Receivable $0

Accumulated Depreciation-Equipment 0

Equipment 8,100

Interest Payable 0

Notes Payable 12,300

Prepaid Insurance 2,436

Salaries Payable 0

Supplies 2,480

Unearned Revenue 29,400

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

1. Wildhorse Co. borrowed $12,300 by signing a 4%, one-year note on September 1, 2017.

2. A count of supplies on December 31, 2017, indicates that supplies of $770 are on hand.

3. Depreciation on the equipment for 2017 is $1,130.

4. Wildhorse Co. paid $2,436 for 12 months of insurance coverage on June 1, 2017.

5. On December 1, 2017, Wildhorse collected $29,400 for consulting services to be performed evenly from December 1, 2017, through March 31, 2018.

6. Wildhorse performed consulting services for a client in December 2017. The client will be billed $3,000. Payment from the customer is expected on January 15, 2018.

7. Wildhorse Co. pays its employees total salaries of $8,900 every Wednesday for the preceding five-day week (Monday through Friday). On Wednesday, January 3, 2018, employees were paid for the last five weekdays of 2017.

Question 1: Prepare adjusting entries for the seven items described above. ( only the seven adjusting entries)

Question 2: Prepare the appropriate subsequent cash entries. ( hint there are only 3 entries)