Gracio Cohad the Following Transactions in the Last Two Months of of Its

question 372

Essay

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

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Definitions:

Monozygotic Twins

Identical twins sharing the same genetic profile.

Dizygotic Twins

Also known as fraternal twins, these are siblings born at the same time but from two different eggs fertilized by separate sperm, sharing about 50% of their DNA.

Shared Environment

A term in psychology referring to those environmental factors that are experienced by multiple individuals in the same way, contributing similarly to their development.

Identical Twin

A twin developed from a single fertilized ovum, thus sharing identical genetic material.