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y Checl Jurassic Jumpers Co (JJ Co.) offers bungee jumping for those looking for an extreme outing JJ Co. prepares annual financial statements and has
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Checl Jurassic Jumpers Co (JJ Co.) offers bungee jumping for those looking for an extreme outing JJ Co. prepares annual financial statements and has a December 31, 2020 year-end. a. On April 1, 2020, JJ Co took out a five year, $760,000 bank loan with an interest rate of 3%. Interest expense is paid on the first day of each month. b. On July 1, 2020, JJ Co. issued a two-year, $56,250 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, 2020, JJ Co took a university student club bungee jumping for $4,250. The student club was invoiced on December 31, 2020 and paid JJ Co. on January 15, 2021 Required: Record the adjusting journal entries at December 31, 2020
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