Jurassic Jumpers Co. (JJ Co.) offers bungee jumping for those looking for an extreme outing. JJ Co. prepares annual financial statements and has a December 31, 2020 year-end. On April 1, 2020, JJ Co. took out a five-year, $500,000 bank loan with an interest rate of 3%. Interest expense is paid on the first day of each month. On July 1, 2020, JJ Co. issued a two-year, $50,000 Note Receivable with an interest rate of 4%. Interest income will be collected on January 1 and July 1 of each year. On December 15, 2020, JJ Co. took a university student club bungee jumping for $2,000. The student club was invoiced on December 31, 2020 and paid JJ Co. on January 15, 2021. Required: Record the adjusting journal entries at December 31, 2020.
Jurassic Jumpers Co. (JJ Co.) offers bungee jumping for those looking for an extreme outing. JJ Co. prepares annual financial statements and has a December 31, 2020 year-end. On April 1, 2020, JJ Co. took out a five-year, $500,000 bank loan with an interest rate of 3%. Interest expense is paid on the first day of each month. On July 1, 2020, JJ Co. issued a two-year, $50,000 Note Receivable with an interest rate of 4%. Interest income will be collected on January 1 and July 1 of each year. On December 15, 2020, JJ Co. took a university student club bungee jumping for $2,000. The student club was invoiced on December 31, 2020 and paid JJ Co. on January 15, 2021. Required: Record the
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