Record the adjusting journal entries at December

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Reference no: EM132671841

Question - 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.

1. On April 1, 2020, JJ Co. took out a five-year, $690,000 bank loan with an interest rate of 3%. Interest expense is paid on the first day of each month.

2. On July 1, 2020, JJ Co. issued a two-year, $57,000 Note Receivable with an interest rate of 4%. Interest income will be collected on January 1 and July 1 of each year.

3. On December 15, 2020, JJ Co. took a university student club bungee jumping for $1,850. 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.

1. Record accrued interest expense.

2. Record accrued interest revenue.

3. Record accrued revenue.

Reference no: EM132671841

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