Exercise 5.2

Exercise 5.2 (Algo) Calculating adjustments. LO 5-2 1. A firm purchased a three-year insurance policy for $12,600 on July 1,201. The $12,600 was debited to the Prepaid Insuranc account. 2. On December 1,201, a firm signed a contract with a local radio station for advertising that will extend over a two-year period. The firm paid $32,400 in advance and debited the amount to Prepaid Advertising. Prepare end-of-month adjusting entries for each of the above situations. Journal entry worksheet Journal entry worksheet Prepare the adjusting entry for advertising. Note: Enter debits before credits