Cambrian Inc, a publicly traded company has recently fired their accountant due to several errors discovered in the accounting records. Victor, President of Cambrian Inc. has asked you to prepare the adjusting entries for the following transactions:
1. Signed a $72,000 contract to provide our services over 7 weeks. As of today we have only completed 2 weeks of services, however have not yet billed or recorded any amounts.
2. Received several operating bills which have not yet been recorded. Utilities $700, Victor's personal cell phone $350, and property taxes $1,750.
3. A note payable was obtained in the amount of $100,000 for 2 years. Interest is 4.75% annually. Interest on a note payable is due the 15 of each month. Assuming we correctly recorded our last interest payment on June 15, please record the proper entry (if any) for June 30.
4. Fired one employee on Wednesday. I have 4 remaining employees. Each employee is paid $125 per day. I pay all my employees every Friday for the 5 weekdays that they have worked.
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