Gracio Co.had the following transactions in the last two months of its year ended December 31.Prepare entries for these transactions under the method that records prepaid expenses as expenses and records unearned revenues as revenues.Also prepare adjusting entries at the end of the year.

\begin{array} { | l | l | } \hline \text { Nov. } 1 & \text { Paid } \$ 11,400 \text { for } 12 \text { months of insurance coverage through October } 31 \text { of next } \\\hline 5 & \text { Received } \$ 8,000 \text { cash for future services to be provided to a customer. } \\\hline 7 & \text { Paid } \$ 10,000 \text { for future advertising. } \\\hline \text { Dec. } 31 & \begin{array} { l } \text { A portion of the insurance paid for on November } 1 \text { has expired. No adjustment } \\\text { was made in November to the insurance account. }\end{array} \\\hline 31 & \begin{array} { l } \text { Services of } \$ 2,500 \text { are not yet provided to the customer who paid on November } \\5 .\end{array} \\\hline 31 & \text { Of the advertising paid for on November } 7 , \$ 1,500 \text { is not yet used. } \\\hline\end{array}

Match the Following Terms with the Appropriate Definition

Multiple Choice

Correct Answer:VerifiedUnlock this answer nowGet Access to more Verified Answers free of chargeAccess For Free

Correct Answer:
Verified
Unlock this answer now
Get Access to more Verified Answers free of charge