Please Help I have no idea how to do this!

I have to prepare a adjusting entry for year ended December 31, 2008

A. One third of the work related to 15,000 cash received in advance is performed this period.

The company has a bank loan and has incurred but not recorded interest expense of 2,500 for the year ended December 31, 2008. The company must pay the interest on January 2, 2009

To prepare the adjusting entries for the year ended December 31, 2008, we need to consider two specific scenarios:

1. One third of the work related to $15,000 cash received in advance is performed this period:
To adjust for this scenario, we need to recognize the revenue related to the work performed during the year. Since one-third of the work has been completed, we need to calculate the amount of revenue earned and record it as an adjustment.

Here's how you can calculate the adjustment:
1. Determine the total amount of revenue related to the $15,000 cash received in advance. In this case, it would be $15,000.
2. Divide the total revenue by the percentage of work completed. Since one-third of the work is completed, the percentage completed is 33.33% (1/3).
3. Multiply the total revenue by the percentage completed to find the revenue earned. In this case, it would be $15,000 x 33.33% = $5,000.
4. Debit the "Cash" account with $5,000 to reduce the cash received in advance.
5. Credit the "Unearned Revenue" account with $5,000 to reduce the liability.

2. The company has incurred, but not recorded, interest expense of $2,500 for the year ended December 31, 2008:
To adjust for this scenario, we need to record the interest expense and update the liability for interest payable.

Here's how you can calculate the adjustment:
1. Determine the amount of interest expense incurred but not recorded. In this case, it would be $2,500.
2. Debit the "Interest Expense" account with $2,500 to recognize the expense.
3. Credit the "Interest Payable" account with $2,500 to increase the liability.

These two adjusting entries will ensure that the financial statements accurately reflect the revenue earned and expenses incurred for the year ended December 31, 2008.