Question
At Oriole Ltd., prepaid costs are debited to expense when cash is paid and unearned revenues are credited to revenue when the cash is
At Oriole Ltd., prepaid costs are debited to expense when cash is paid and unearned revenues are credited to revenue when the cash is received. During January of the current year, the following transactions occurred. Jan. 2 Received $11,750 for services to be performed in the future. 2 Paid $3,744 for casualty insurance protection for the year. 10 Paid $5,000 for supplies. On January 31, it is determined that $3,720 of the service revenue has been earned and that $2,980 of supplies are on hand. (a) Journalize the January transactions. (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.
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