Consider the following information related to Teraa Consulting: 1. On October 1, 2012, Teraa Consulting entered into an agreement to provide consulting services for six months to Soelberg Company. Soelberg agreed to pay Teraa $750 for each month of service. Payment will be made at the end of the contract (March 31, 2013). 2. On April 30, Teraa borrowed $40,000 from a local bank at 12%. Th e loan is to be repaid, with interest, after one year. As of December 31, no interest expense had been recognized. 3. On February 25, Teraa paid $36,000 for 12 months of rent beginning on March 1. On February 25, Teraa made a journal entry debiting Prepaid Rent Expense. 4. At the beginning of 2012, Teraa had $825 in supplies on hand. During 2012, Teraa purchased $7,290 in supplies. On December 31, 2012, Teraa had $1,035 in supplies on hand. For each item listed, prepare the necessary adjusting entries to be made on December 31, 2012.
Consider the following information related to Teraa Consulting:
1. On October 1, 2012, Teraa Consulting entered into an agreement to provide consulting
services for six months to Soelberg Company. Soelberg agreed to pay Teraa $750 for each
month of service. Payment will be made at the end of the contract (March 31, 2013).
2. On April 30, Teraa borrowed $40,000 from a local bank at 12%. Th e loan is to be repaid,
with interest, after one year. As of December 31, no interest expense had been recognized.
3. On February 25, Teraa paid $36,000 for 12 months of rent beginning on March 1. On
February 25, Teraa made a
4. At the beginning of 2012, Teraa had $825 in supplies on hand. During 2012, Teraa
purchased $7,290 in supplies. On December 31, 2012, Teraa had $1,035 in supplies on
hand.
For each item listed, prepare the necessary
2012.
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