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Garcia Company had the following selected transactions during the year. January 1 The company paid $ 9 , 8 0 0 cash for 1 2
Garcia Company had the following selected transactions during the year.
January The company paid $ cash for months of insurance coverage beginning immediately.
August The company received $ cash in advance for months of contracted services beginning on August and ending on January
December The company prepared any necessary yearend adjusting entries related to insurance coverage and services performed.
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.
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.
Note: If no entry is required for a transactionevent select No journal entry required" in the first account field.
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