Prepare the journal entry to record the interest payments

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Reference no: EM133208336

Problem

I. Employees earned $250,000, $26,775 was deducted for FICA and $62,000 for income taxes
II. Company recorded the emplover's share of FICA.
III. Company borrowed $100,00 n June 1, 2014, 6% interest. Note was due on May 31, 2015
IV. Prepare the adjusting entry to record interest owed at December 31, 2014.
V. Prepare the journal entry to record the interest and principal payments on May 31, 2015
VI. On July 1, 2014, the company received $2,000 for one year's worth of services (retainer).
VII. As of the December 31, one half of the services were earned. 8 On June 30th the remainder was earned.

Reference no: EM133208336

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