Details of Prepaid Insurance are shown in the account:
Callaway prepays insurance on March 31 each year. At December 31, $600 is still prepaid.
b. Callaway pays employees each Friday. The amount of the weekly payroll is $6,000 for a 5-day work week. The current accounting period ends on Wednesday.
c. Callaway has a note receivable. During the current year, Callaway has earned accrued interest revenue of $500 that it will collect next year.
d. The beginning balance of supplies was $2,600. During the year, Callaway purchased supplies costing $6,100, and at December 31 supplies on hand total $2,100.
e. Callaway is providing services for Manatee Investments, and the owner of Manatee paid Callaway $12,000 as the annual service fee. Callaway recorded this amount as Unearned Service Revenue. Callaway estimates that it has earned one-third of the total fee during the current year.
f. Depreciation for the current year includes Office Furniture, $1,000 and Equipment, $2,700. Make a compound entry.