Journal entries to account for payments in advance James has extracted a

Journal entries to account for payments in advance James has extracted a trial balance from his books of account at 31 December 2014 that includes the following entries.


You are told that the property rental shown in the trial balance is for a period of 14 months, so two months are paid in advance. Included in the hotel expenses is an amount of $400 that relates to expenses for the following accounting period. Required Detail the journal entries to include these amounts in the financial statements.