Brief Exercise $4\mathrm{.}1($Static$)$ Prepaid Expenses and Unearned Revenue $($LO$4-3,$ LO$4-4)$

On October $1,$ Petree Corporation purchased a six$-$month insurance policy from The Avenson Agency for $$7,200.$

a$.$ Prepare the necessary adjusting entry for Petree Corporation on October $31,$ assuming it recorded the October $1$ expenditure as Prepaid Insurance.

b$.$ Prepare the necessary adjusting entry for The Avenson Agency on October $31,$ assuming it recorded Petree's payment as$.$ Unearned Insurance Premiums.