Gomez Co. had the following transactions in the last two months of its year ended December 31. Entries can draw from the following partial chart of accounts: Cash; Prepaid Insurance; Prepaid Advertising;
Prepaid Consulting; Unearned Revenue; Services Revenue; Insurance Expense; Advertising Expense; and Consulting Expense.

Required
1. Prepare entries for these transactions under the method that initially records prepaid expenses as assets and records unearned revenues as liabilities. Also prepare adjusting entries at the end of the year.
2. Prepare entries for these transactions under the method that initially records prepaid expenses as expenses and records unearned revenues as revenues. Also prepare adjusting entries at the end of the year.

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Nov. 1 1 30 15 Dec. 1 Paid $3,000 cash for consulting to be received over the next three months. 31 31 31 31 Paid $1,800 cash for future advertising. Paid $2,460 cash for 12 months of insurance through October 31 of the next year. 31 Received $3,600 cash for future services to be provided to a customer. Received $7,950 cash for future services to be provided to a customer. Of the advertising paid for on November 1, $1,200 worth is not yet used. Two months of the insurance paid for on November 1 has expired. No adjustment was made in November to Prepaid Insurance. Services worth $1,500 are not yet provided to the customer who paid on November 30. One-third of the consulting paid for on December 1 has been received. The company has performed $3,300 of services that the customer paid for on December 15.