Deferred Revenue (Unearned Revenue) Sparky Monthly is a company that offers magazine subscriptions to students each month. On January 1, a customer pays $120 in advance to Sparky Monthly for a 12-month magazine subscription. 1. What is the appropriate entry that Sparky Monthly will record on January 1? 2. What is the appropriate adjusting entry that Sparky Monthly will record on January 31? 3. What is the appropriate adjusting entry that Sparky Monthly will record on February 28 (month's end)? Deferred Expense (Prepaid Expense/Prepaid Asset) Sparky Monthly rents an office building close to campus. On March 1, Sparky Monthly prepays 4 months' rent. Rent for the office building is $1,000 a month. 1. What is the appropriate entry that Sparky Monthly will record on March 1? 2. What is the appropriate adjusting entry that Sparky Monthly will record on March 31? 3. What is the appropriate adjusting entry that Sparky Monthly will record on April 30