1. ABC Co. had the following transactions in the last months of its year ended December 31. Prepare entries for these transactions under the method that records prepaid expenses as assets and records unearned revenues as liabilities. Also prepare adjusting entries at the end of the year. (Mark as 10%) Nov. 1 Paid $11,400 for 12 months of insurance coverage through October 31 of next year. 7 Paid $10,000 for future advertising. Dec. 31 A portion of the insurance paid for on November 1 has expired. No adjustment was made in November to the insurance account. 31 Services of $2,500 are not yet provided to the customer who paid on November 5. 31 Of the advertising paid for on November 7, $1,500 is not yet used. Date Accounts and Explanation Debit Credit Nov. 1 4