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Question - Thiessen Tutoring Services provides in-home tutoring services to elementary school students. In December 2019, it provided four tutoring sessions to a client, who agreed to pay $400 after every 10 sessions. The company has a December 31 year end. Assume that Thiessen Tutoring Services will provide six more sessions to the client in January 2020, when the client will pay $400. Assume that Thiessen Tutoring Services provided the other six sessions to the client in January and the client paid in full at the end of the month. Thiessen Tutoring Services also borrowed $75,000 from the bank on November 1, 2019, and must repay the loan principal and interest on February 1, 2020. The bank charges an annual interest rate of 6% on the loan.
a) Record any adjusting entries required on December 31, 2019?
b) Record any adjusting entries required in 2020?
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