1. A firm purchased a two-year Insurance policy for $7,440 on July 1, 20X1. The $7,440 was debited to the Prepaid Insurance account. 2. On December 1, 20X1, a firm signed a contract with a local radio station for advertising that will extend over a one-year period. The firm paid $15.720 in advance and debited the amount to Prepaid Advertising. Prepare end-of-month adjusting entries for each of the above situations. View transaction Bat Journal entry worksheet B Prepare the adjusting entry for insurance. Note: Enter debits before credits. Transaction 1 Record entry General Journal Clear entry Debit Credit View general Journal
1. A firm purchased a two-year Insurance policy for $7,440 on July 1, 20X1. The $7,440 was debited to the Prepaid Insurance account. 2. On December 1, 20X1, a firm signed a contract with a local radio station for advertising that will extend over a one-year period. The firm paid $15.720 in advance and debited the amount to Prepaid Advertising. Prepare end-of-month adjusting entries for each of the above situations. View transaction Bat Journal entry worksheet B Prepare the adjusting entry for insurance. Note: Enter debits before credits. Transaction 1 Record entry General Journal Clear entry Debit Credit View general Journal
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Exercise 5.2 (Algo) Calculating adjustments. LO 5-2
1. A firm purchased a two-year Insurance policy for $7,440 on July 1, 20X1. The $7.440 was debited to the Prepaid Insurance
account.
2. On December 1, 20X1, a firm signed a contract with a local radio station for advertising that will extend over a one-year period.
The firm paid $15,720 in advance and debited the amount to Prepaid Advertising.
Prepare end-of-month adjusting entries for each of the above situations.
View transaction list
Journal entry worksheet
Prepare the adjusting entry for insurance.
Note: Enter debits before credits.
Transaction
1
Record entry
General Journal
Clear entry
Debit
Credit
View general Journal
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