Gomez Company had the following transactions in the last two months of its year ended December 31.

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.

November 1 Paid $2,000 cash for future advertising. November 1 Paid $2,520 cash for 12 months of insurance through October 31 of the next year. ovember 30 Received $8,600 cash for future services to be provided to a customer. December 1 Paid $12,000 cash for consulting to be received over the next four months. ecember 15 Received $9,550 cash for future services to be provided to a customer. ecember 31 of the advertising paid for on November 1,$1,300 worth is not yet used. ecember 31 A portion of the insurance paid for on November 1 has expired. No adjustment was made in November ecember 31 Services worth $1,600 are not yet provided to the customer who paid on November 30 . ecember 31 One-fourth of the consulting paid for on December 1 has been received. ecember 31 The company has performed $3,900 of services that the customer paid for on December 15