Gomez Co. had the following transactions in the last two months of its year ended December 31. Nov. 1 Paid $2,200 cash for future advertising. 1 Paid $4,080 cash for 12 months of insurance through October 31 of the next year. 30 Received $2,600 cash for future services to be provided to a customer. Dec. 1 Paid $11,100 cash for a consultant's services to be received over the next five months. 15 Received $9,550 cash for future services to be provided to a customer. 31 Of the advertising paid for on November 1, $1,250 worth is not yet used. 31 A portion of the insurance paid for on November 1 has expired. No adjustment was made in November to Prepaid Insurance. 31 Services worth $1,400 are not yet provided to the customer who paid on November 30. 31 One-fifth of the consulting services paid for on December 1 have been received. 31 The company has performed $4,100 of services that the customer paid for on December 15.

Required:

1. Prepare entries for these transactions under the method that initially records prepaid expenses as assets and records unearned revenues as liabilities. Also prepare adjusting entries at the end of the year.

2. Prepare entries for these transactions under the method that initially records prepaid expenses as expenses and records unearned revenues as revenues. Also prepare adjusting entries at the end of the year.