2. KellCo is a sole proprietorship that provides cleaning services to office buildings. It is the end of KellCo's fiscal year (12/31X1) and you have been provided the following information to make the appropriate journal entries to bring the accounting system up to date. A. On 10/15 the company entered into a one year contract with the SkyWay property management company to provide cleaning services for one of its large office buildings. The total contract was for $120,000 per year. KellCo required the SkyWay property management company to pay a 10% deposit of the total contract. On 10/15/X1 KellCo received a check for $12,000 as a deposit on the contract. On that date, the bookkeeper debited Cash and credited Revenue to record the transaction. At the end of the fiscal year, KellCo had provided 15% of the services called for in the contract. At the end of the fiscal year, 12/31/X1, no journal entries had been made to the accounting system concerning the contract except for the initial receipt of the deposit. B. When KellCo started the business on 8/1/X1 the company purchased a one-million-dollar liability insurance policy from their insurance broker. The cost of the policy for one full year was $36,000 which the company paid by check on that date. The bookkeeper debited Prepaid Insurance Expense and credited Cash for the amount paid. No other journal entries had been made concerning this transaction at the end of the fiscal year.