1. A firm purchased a two-year insurance policy for $7,440 on July 1,201. The $7,440 was debited to the Prepaid Insurance account. 2. On December 1, 20X1, a firm signed a contract with a local radio station for advertising that will extend over a one-year period. The firm paid $15,720 in advance and debited the amount to Prepaid Advertising. Prepare end-of-month adjusting entries for each of the above situations. Journal entry worksheet Note: Enter debits before credits. Journal entry worksheet Prepare the adjusting entry for advertising. Note: Enter debits before credits