HURRIYET and AKBANK sign an advertising contract on October 1, 2021. Per terms of the contract, AKBANK pays HURRIYET $360,000 on October 1, 2021, and HURRIYET will publish a full page AKBANK advertisement on the last business day of each month for a year. The first advertisement is to be published on October 30, 2021. Fiscal year end is December 31 for both firms.

Required:

1. What is the entry that should be made by HURRIYET on October 1, 2021?

2. What is the entry that should be made by AKBANK on October 1, 2021?

3. What is the entry that should be made by HURRIYET on December 31, 2021?

4. What is the entry that should be made by AKBANK on December 31, 2021?

5. What is the effect of October 1, 2021 entry on HURRIYETs balance sheet?

6. What is the effect of October 1, 2021 entry on AKBANKs balance sheet?

7. What is the effect of December 31, 2021 entry on HURRIYETs balance sheet?

8. What is the effect of December 31, 2021 entry on AKBANKs balance sheet?

9. How will HURRIYETs balance sheet be affected if December 31, 2021 entry is skipped?

10. How will AKBANKs balance sheet be affected if December 31, 2021 entry is skipped?