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On May 1, 2018, the company pays $4,800 for a two-year fire and liability insurance policy and debits Prepaid Insurance.

c. On May 1, 2018, the company pays $4,800 for a two-year fire and liability insurance policy and debits Prepaid Insurance.

a. On July 1, 2018, Gamecock receives $6,000 from a customer for advertising services to be given evenly over the next 10 months. Gamecock credits Deferred Revenue.

d. On September 1, 2018, the company borrows $20,000 from a local bank and signs a note. Principal and interest at 12% will be paid on August 31, 2019.



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2 comments
  • C was right. A and D were both incorrect
    • bmandell
    • Sep 05, 2016 at 2:54pm
  • For A & D Adjusting entries are done on 31 December? Please Confirm
    • minxhere
    • Sep 05, 2016 at 2:59pm

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