Prepare entries for the transactions below under the method that records prepaid expenses as expenses and records
Question:
Prepare entries for the transactions below under the method that records prepaid expenses as expenses and records unearned revenues as revenues. Also, define the adjusting entries at the end of the year.
November 1, Paid 11,400 for 12 months of insurance coverage through October 31st of next year.'
November 5, Received 8,000 cash for future services to be provided by a customer
November 7, Paid 10,000 for future advertising
December 31st, a portion of the insurance paid on November 1 has expired. Though no adjustments were made in November to the insurance account
December 31st, Services of $2,500 are not yet provided to the customer who pre-paid on November 5th
December 31st, from the advertising, paid for on November 7th, $1,500 is not yet used.
Fundamental Accounting Principles
ISBN: 978-1259536359
23rd edition
Authors: John Wild, Ken Shaw, Barbara Chiappett