Question
The geological consulting firm of Gilbert, Marsh, & Kester prepares adjusting entries on a monthly basis. Among the items requiring adjustment on December 31, 2015,
The geological consulting firm of Gilbert, Marsh, & Kester prepares adjusting entries on a monthly basis. Among the items requiring adjustment on December 31, 2015, are the following: |
1. | The company has outstanding a $73,000, 9 percent, two-year note payable issued on July 1, 2014. Payment of the $73,000 note, plus all accrued interest for the two-year loan period, is due in full on June 30, 2016. |
2. | The firm is providing consulting services to Texas Oil Company at an agreed-upon rate of $970 per day. At December 31, 10 days of unbilled consulting services have been provided. |
a. | Prepare the two adjusting entries required on December 31 to record the accrued interest expense and the accrued consulting revenue earned. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round intermediate calculations. Round your answers to the nearest whole dollar.)
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