Garcia Company had the following selected transactions during the yea.docx - Garcia Company had the following selected transactions during the year Jan

Garcia Company had the following selected transactions during the yea.docx

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Garcia Company had the following selected transactions during the year. Jan. 1 The company paid $8,000 cash for 12 months of insurance coverage beginning immediately. Aug 1 The company received $5,400 cash in advance for 6 months of contracted services beginning on August 1 and ending on January 31. Dec. 31 The company prepared any necessary year-end adjusting entries related to insurance coverage and services performed. Dec. 31 The company prepared any necessary year-end adjusting entries related to insurance coverage and services performed. a. Record journal entries for these transactions assuming Garcia follows the usual practice of recording a prepayment of an expense in an asset account and recording a prepayment of revenue received in a liability account. View transaction list Journal entry worksheet Record the services provided. Note: Enter debits before credits. General Journal
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Unformatted text preview: Debit Date Dec 31 Credit 1,080 Cash Accounts receivable Cash Depreciation expense Insurance expense Prepaid insurance Record er View general journal Revenue Prepaid insurance Revenue Unearned revenue Wages expense Wages payable b. Record journal entries for these transactions assuming Garcia follows the alternative practice of recording a prepayment of an expense in an expense account and recording a prepayment of revenue received in a revenue account. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet Record the adjusting entry required for services provided. Note: Enter debits before credits. Date General Journal Debit Credit Dec 31 Record entry Clear entry View general journal...
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