The geological consulting firm of Gilbert, Marsh, & Kester prepares adjusting entries on a monthly basis. Among the items requiring adjustment on December 31, year 2, are the following.

1. The company has outstanding a $50,000, 9 percent, 2-year note payable issued on July 1, year 1. Payment of the $50,000 note, plus all accrued interest for the 2-year loan period, is due in full on June 30, year 3.

2. The firm is providing consulting services to Texas Oil Company at an agreed-upon rate of $1,000 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.