Garcia Company had the following selected transactions during the year.

Jan.		1		The company paid $8,200 cash for 12 months of insurance coverage beginning immediately.
Aug		1		The company received $5,700 cash in advance for 6 months of contracted services beginning on August 1 and ending on January 31.
Dec.		31		The company prepared any necessary year-end adjusting entries related to insurance coverage and services performed.

a. Record journal entries for these transactions assuming Garcia follows the usual practice of recording a prepayment of an expense in an asset account and recording a prepayment of revenue received in a liability account.

b. Record journal entries for these transactions assuming Garcia follows the alternative practice of recording a prepayment of an expense in an expense account and recording a prepayment of revenue received in a revenue account. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

General journal entry 2: Record the cash received in advance of services.

General journal entry 3: Record the adjusting entry required for insurance.

General journal entry 4: Record the adjusting entry required for services provided.

Journal entry worksheet 2 3 Record the services provided. Note: Enter debits before credits. General Journal Date Debit Credit Unearned revenue Dec 31 Revenue Record entry Clear entry View general journal Journal entry worksheet 1 2 3 4 Record the advance cash payment of insurance. Note: Enter debits before credits. Date General Journal Debit Credit Jan 01 Record entry Clear entry View general journal