Reference no: EM13974134

Adjusting Entries. The following transactions pertain to the 1995 accounting period of Shelfer Company. Feb. 1 - Received $ 3,600 of rent for one year paid in advance by a tenant. June 1 - Paid $ 2,000 to a television station for commercials that will be run evenly over two years, beginning on July 1, 1995. Nov. 1 - Paid $2,880 for a four-year fire insurance policy. Dec. 1 - Received $ 2,400 from customers representing subscriptions paid in advance for two years. Instructions: a. Journalize the adjusting entries required on December 31, 1995, assuming that the company enters the amounts that are received or paid in advance in real (i.e balance sheet) accounts. b. Journalize the adjusting entries required on December 31, 1995, assuming that the company enters the amounts that are received or paid in advance in nominal (i.e income statement) accounts.