Prepare end-of-month adjusting entries

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Reference no: EM132440610

Question -

1. A firm purchased a four-year insurance policy for $10,080 on July 1, 2019. The $10,080 was debited to the Prepaid Insurance account.

2. On December 1, 2019, a firm signed a contract with a local radio station for advertising that will extend over a three-year period. The firm paid $43,560 in advance and debited the amount to Prepaid Advertising.

Required - Prepare end-of-month adjusting entries for each of the above situations.

Reference no: EM132440610

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