On August I, Secret Sauce Technologies Inc. paid $ 12,600 in advance for two years' membership in

Question:

On August I, Secret Sauce Technologies Inc. paid $ 12,600 in advance for two years' membership in a global technology association. Prepare two sets of journal entries for Secret Sauce, with each set of journal entries recording the August I journal entry and the December 31 adjusting entry. Treat the expenditure as an asset in the first set of journal entries, and treat the expenditure as an expense in the second set of journal entries.