Selected Transactions of Ventura Corporation Are Presented Below:
March $\$ 9,000$

question 135

Essay

Selected transactions of Ventura Corporation are presented below:
March 1 -Received $\$ 9,000$ in payment for 6 months advance rent from Franken Company and recorded it as rent revenue. May 1 -Paid Acme Insurance $\$ 6,000$ for a 2-year liability policy and recorded it as insurance expense. Policy begins on May 1. June 1 -Received $\$ 5,400$ from Kennedy Corporation as an advance payment for a 6 -month advertising contract and recorded it as advertising revenue. Contract begins on June 1 . Required: Prepare the adjusting entries that would be required on June 30.

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Definitions:

Liquidation

The process of winding up a company's financial affairs by selling its assets to pay off its debts, eventually leading to the dissolution of the company.

Liquidator's Receipts

The proceeds collected by a liquidator during the process of winding up a company, distributed to claimants and creditors according to statutory priorities.

Joint Arrangements

Agreements between two or more parties to undertake an economic activity that is subject to joint control.

Joint Ventures

A business arrangement in which two or more parties agree to pool their resources for the purpose of accomplishing a specific task.