Garcia Company had the following selected transactions during the year Jan. 1 The company paid $9,400 cash for 12 months of insurance coverage beginning immediately, Aug 1 The company received $7,500 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. View transaction list Journal entry worksheet 1 2 Record the advance cash payment of insurance.