1.The long term liabilities were outstanding for all of 20x1 and accrue interest at 8% APR.CMCrecords accrued interest quarterly (interest was last updated on Sept. 30.)The company is required to pay the interest annually each January 1^st.

2.CMC often allows customers to finance the purchase of their products through long-term lending agreements and therefore reports Long-term Notes Receivable on their Balance Sheet.These notes are interest bearing and earn CMC interest revenue.The notes accrue interest at 8% APR and were outstanding for all of 20x1.Interest is payable to CMC each January 1^st.

Can some plz adjust the journal entry for this two ?

Interest expense 41,310 Legal and accounting fees 106,650 Miscellaneous 9,048 Office expense 220,114 Payroll taxes 136,975 Property taxes 104,570 Repair and maintenance 42,028 Research and development 470,680 Telephone 20,085 Travel and entertainment 38,391 Utilities 47,049 Wages 964,670 Salaries - Officers 710,000 Income Summary 0 Unrealized Gain/Loss-AFS 0 0 14,933,000 14,933,000