Irom push Spash Art collects $15,000 cash for dance lessons rury a. On September 1, Splish Spash Art col September 1, 2017 to December 31, 2017. b. On October 1, Splish Splash Art collects $5,000 plish Splash Art collects $5,000 cash ($2,500 per month) to rent its performance stage for the full month of December 2017 and January 2018. 1, 2017, Splish Splash Art collects $8,000 cash for four months of music lessons. The lessons run from October 1, 2017 to January 31, 2018. Required for each transaction, record the initial journal entry and the adjusting entry recue December 31, 2017 Exercise 3-6 Preparing adjusting entries (annual)-accrued expenses and revenue L04 Jurassic Jumpers Co. (JJ Co.) offers bungee jumping for those looking for an extreme activity. JJ Co. prepares annual financial statements and has a December 31, 2017 year-end. 196 CHAPTER 3 Adjusting Accounts for Ejnancial Statements 50000K3 x K2 0.15 a. On April 1, 2017, 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. b. On July 1, 2017, 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. c. On December 15, 2017, JJ Co. took a university student club bungee jumping for $2,000. The student club was invoiced on January 1, 2018 and pays JJ Co. on January 15, 2018. Required Record the adjusting journal entries at December 31, 2017. lan lannual) 104