Waterway Company has the following balances in selected accounts on December 31, 2020. All the accounts have normal balances. The information below has been gathered at December 31, 2020. All the accounts have normal balances. The information below has been gathered at December 31, 2020. 1. Waterway Company borrowed $22,000 by signing a 12%, one-year note on August 1,2020 . 2. A count of supplies on December 31,2020 , indicates that supplies of $910 are on hand 3. Depreciation on the equipment for 2020 is $1,800. 4. Waterway Company paid $2,520 for 12 months of insurance coverage on May 1, 2020 . 5. On November 1, 2020, Waterway collected $53,000 for consulting services to be performed from November 1,2020 , through March 31, 2021 6. Waterway performed consulting services for a client in December 2020 . The client will be billed $6,400. 7. Waterway Company pays its employees total salaries of $14,000 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 2020 . No. Account Titles and Explanation 6. Cash Accounts Receivable 7. Salaries and Wages Expense Salaries and Wages Payable Debit 6400 8400 Credit 6400 8400 No Entry No Entry Prepare the entry the company would make related to item 6 in 2021 when the client pays the bill and the entry the company would make in 2021 when it pays its employees. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. List all debit entries before credit entries.) 
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