Q. No 2 (A) Consider the following information related to Teraa Consulting: 1. On October 1, 2012, Teraa Consulting entered into an agreement to provide consulting services for six months to Soelberg Company. Soelberg agreed to pay Teraa $750 for each month of service. Payment will be made at the end of the contract (March 31, 2013). 2. On April 30, Teraa borrowed $40,000 from a local bank at 12%. The loan is to be repaid, with interest, after one year. As of December 31, no interest expense had been recognized. 3. On February 25, Teraa paid $36,000 for 12 months of rent beginning on March 1. On February 25, Teraa made a journal entry debiting Prepaid Rent Expense. 4. At the beginning of 2012, Teraa had $825 in supplies on hand. During 2012, Teraa purchased $7,290 in supplies. On December 31, 2012, Teraa had $1,035 in supplies on hand. For each item listed, prepare the necessary adjusting entries to be made on December 31, (10) 2012. Q. No 2 (B) The Muller Company is a Swiss wholesaler of furniture. They deal in Swiss currency which CHF. Muller uses a periodic inventory system and carried out the following transactions. Sep 2. Purchased merchandise on account CHF 350000 terms 5/10, n/45 Sep 3 The company also paid transportation cost CHF 1500 Sep 7 Muller complained about some products and the supplier willing to take the merchandise back. It amounts to CHF 10000. Sep 11 The Company made the required payment to settle debt with the supplier. Required: Prepare the necessary journal entries using both gross and et method