Financial accounting 16th Edition by Jan Williams,Susan Haka,Mark Bettner ,Joseph Carcello

تمرين 38

The geological consulting firm of Gilbert, Marsh, Kester prepares adjusting entries on a monthly basis.mong the items requiring adjustment on December 31, 2015, are the following:
1.he company has outstanding a $50,000, 9 percent, two-year note payable issued on July 1, 2014.ayment of the $50,000 note, plus all accrued interest for the two-year loan period, is due in full on June 30, 2016.
2.he firm is providing consulting services to Texas Oil Company at an agreed-upon rate of $1,000 per day.t December 31, 10 days of unbilled consulting services have been provided.
a.repare the two adjusting entries required on December 31 to record the accrued interest expense and the accrued consulting revenue earned.
b.ssume that the $50,000 note payable plus all accrued interest are paid in full on June 30, 2016.hat portion of the total interest expense associated with this note will be reported in the firm's 2016 income statement
c.ssume that on January 30, 2016, Gilbert, Marsh, Kester receive $25,000 from Texas Oil Company in full payment of the consulting services provided in December and January.hat portion of this amount constitutes revenue earned in January