Question: I need help with this Question i tried all i could but im failing to understand the T- Accounts Question 4 (30 marks) Golden Designs

I need help with this Question i tried all i could but im failing to understand the T- Accounts
I need help with this Question i tried all i could but
im failing to understand the T- Accounts Question 4 (30 marks) Golden
Designs incurred the following 2018 transactions: November 01: Paid $ 60,000 to

Question 4 (30 marks) Golden Designs incurred the following 2018 transactions: November 01: Paid $ 60,000 to place an ad for 4 months on the internet. December 01: Received $ 100,000 cash payment to produce a monthly coin for the next 5 months. Required: 1. Open T-accounts for Prepaid Advertising, Advertising Expense, Unearned Revenue, and Revenue. 2. Prepare a journal entry that would debit an asset account, Prepaid Advertising. Prepare a journal entry that would credit a liability account, Unearned Revenue. No explanations are needed. 3. Prepare journal entries to record the December 31, 2018 adjustments. 4. Post the journal entries to the T-accounts. No posting references are needed. Show the December 31, 2018 balances on the T-accounts. 5. Repeat requirements A through D above. This time, instead of debiting Prepaid Advertising, debit Advertising Expense. This time, instead of crediting Unearned Revenue, credit Revenue. 6. By comparing the balances in requirements D and E, what did you notice? (30 m 1. and 4 Advertising Expense Nov.1 60,000 Unearned Revenue Revenue DATE 2018 Nov Journal ACCOUNT TITLES AND EXPLANATIONS Prepaid Advertisement Cash- POST. REF. CREDIT DEBIT 60,000 60,000 1 100,000 Cash Unearned Revenue 100,000 3. Adjusting Entries Journal DATE - ACCOUNT TITLES AND 2018 EXPLANATIONS Dec 31 Advertising Expense Prepaid Advertising POST. REF. CREDIT DEBIT 30,000 30,000 DATE 2018 Journal ACCOUNT TITLES AND EXPLANATIONS POST. REF. DEBIT CREDIT

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