Question
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
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. a. On April 1, 2017, JJ Co. took out a five-year, $890,000 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, $70,000 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 $2,750. The student club was invoiced on 31 December 2017 and pays JJ Co. on January 15, 2018.
Required: Record the adjusting journal entries at December 31, 2017. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
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