At Prescott Services , prepaid costs are debited to expense when cash is paid and unearned revenues are credited to revenue when the cash is received . During the current year , the following transactions occurred . Prescott Services has a December 31 year end July 31 , 2023 Collected $ 24,000 cash from Curry Inc. for 12 months service in advance . The service period starts on August 1 , 2023 Oct 30 , 2023 Paid $ 9,000 cash to Creative Ltd for rent for 6 months beginning November 1 , 2023 Nov 30 , 2023 Paid $ 12,000 cash to Good Support Inc. for 12 months insurance beginning December 1 , 2023 Instructions : Journalize the cash transactions ( 3 marks )