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Craig Ferguson Company has the following balances in selected accounts on December 31, 2017. Acco... Craig Ferguson Company has the following balances in selected accounts on December 31, 2017.

Accounts Receivable $-0-

Accumulated Depreciation-Equipment 10,000

Interest Payable -0-

Notes Payable 20,000

Prepaid Insurance 2,700

Salaries and Wages Payable -0-

Supplies 3,500

Unearned Service Revenue 50,000

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

1. Craig Ferguson Company borrowed $20,000 by signing a 12%, one-year note on August 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 $2,000.

4. Craig Ferguson Company paid $2,700 for 12 months of insurance coverage on May 1, 2017.

5. On November 1, 2017, Craig Ferguson collected $50,000 for consulting services to be performed from November 1, 2017, through March 31, 2018.

6. Craig Ferguson performed consulting services for a client in December 2017. The client will be billed $6,300.

7. Craig Ferguson Company pays its employees total salaries of $13,000 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 2017.

b) Prepare the 2018 entry for items 6 and 7.

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