The geological consulting firm of Gilbert, Marsh, & Kester prepares adjusting entries on a monthly basis. Among the items requiring adjustment on December 31, year 2, are the following. The company has outstanding a $50,000, 9 percent, 2-year note payable issued on July 1, year 1. Payment of the $50,000 note, plus all accrued interest for the 2-year loan period, is due in full on June 30, year 3. The firm is providing consulting services to Texas Oil Company at an agreed-upon rate of $1,000 per day. At December 31, 10 days of unbilled consulting services have been provided. Instructions: Prepare the two adjusting entries required on December 31 to record the accrued interest expense and the accrued consulting revenue earned.
The geological consulting firm of Gilbert, Marsh, & Kester prepares adjusting entries on a monthly basis. Among the items requiring adjustment on December 31, year 2, are the following. The company has outstanding a $50,000, 9 percent, 2-year note payable issued on July 1, year 1. Payment of the $50,000 note, plus all accrued interest for the 2-year loan period, is due in full on June 30, year 3. The firm is providing consulting services to Texas Oil Company at an agreed-upon rate of $1,000 per day. At December 31, 10 days of unbilled consulting services have been provided. Instructions: Prepare the two adjusting entries required on December 31 to record the accrued interest expense and the accrued consulting revenue earned.
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter6: Cash And Receivables
Section: Chapter Questions
Problem 10RE: On December 1 of the current year, Jordan Inc. assigns 125,000 of its accounts receivable to...
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The geological consulting firm of Gilbert, Marsh, & Kester prepares
- The company has outstanding a $50,000, 9 percent, 2-year note payable issued on July 1, year 1. Payment of the $50,000 note, plus all accrued interest for the 2-year loan period, is due in full on June 30, year 3.
- The firm is providing consulting services to Texas Oil Company at an agreed-upon rate of $1,000 per day. At December 31, 10 days of unbilled consulting services have been provided.
Instructions:
Prepare the two adjusting entries required on December 31 to record the accrued interest expense and the accrued consulting revenue earned.
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