The Following Transactions Occurred in August,2012 for Applegate Consulting $August 1,2012 \quad$

question 64

Essay

The following transactions occurred in August,2012 for Applegate Consulting:
$August 1,2012 \quad$ Applegate loaned $\$ 2,000$ to an employee with a $9 \%$ interest rate. The loan stipulates that principal and interest be paid back on August 1, 2013 .
$August 31,2012\quad$ Applegate Consulting performed $\$ 3,200$ worth of services for Midatlantic Corp.
The billing department at Applegate Consulting was unable to bill Midatlantic on August 31, 2012
because the company's computers were malfunctioning and awaiting service. What adjusting entries should Applegate Consulting make on August 31,2012?

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Definitions:

Welfare Loss

A decrease in economic efficiency that occurs when there is an optimal allocation of resources that is not achieved due to various reasons such as externalities or market failure.

Hierarchy of Needs

A psychological theory proposed by Abraham Maslow that categorizes human needs into a five-level model, ranging from basic physiological needs to self-actualization.

ERG Theory

A motivational theory developed by Clayton Alderfer that categorizes human needs into three groups: Existence, Relatedness, and Growth.

Two-Factor Theory

A psychological theory proposed by Herzberg that suggests there are two sets of factors affecting people's work motivation and satisfaction: hygiene factors and motivators.