7. Your business collected royalty income of 720,000 in advance on November 1, 20x1. As of December 31, 20x1, 560,000 of the advanced collection is earned. Requirements: a. Provide the journal entry to record the collection on November 1, 20x1 under each of the following methods: i. Liability method ii. Income method (Hints 'Royalty income'; 'Unearned income') b. Provide the adjusting entries on December 31,201 under each of the methods listed above. "Royalty income is the income you earn if you have invented something, wrote a book, composed a song, made a YouTube video and have it copyrighted, or other artistic or literary work, and you let another party use/publish/exploit your work in exchange for money. It is like renting out your work to another party. 8. Your business paid one-year fire insurance of P360,000 on October 31,201. Requirements: 268 a. Provide the journal entry to record the prepayment on October 31,201 under each of the following methods: i. Asset method ii. Expense method b. Provide the adjusting entries on December 31,201 under each of the methods listed above