P3A-44B (similar to) Speedy Pack'n Mail completed the following transactions during 2016: (Click the icon to view the transactions.) Read the requirements. Requirement 1. Journalize the transactions assuming that Speedy debits an asset account for prepaid expenses and credits a liability account for unearned revenues. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.) Nov. 1: Paid $12,500 store rent covering the five-month period ending March 31, 2017 Date Accounts and Explanation Debit Credit More Info - X Nov. 1 Nov. 1 Nov. 1 Dec. 1 Paid $12,500 store rent covering the five-month period ending March 31, 2017 Paid $9,600 insurance covering the four-month period ending February 28, 2017 Collected $4,800 cash in advance from customers. The service revenue will be earned $800 monthly over the six-month period ending May 31, 2017 Collected $9,600 cash in advance from customers. The service revenue will be earned $2,400 monthly over the four-month period ending March 31, 2017 Dec. 1 Print Done Requirements 1. Journalize the transactions assuming that Speedy debits an asset account for prepaid expenses and credits a liability account for unearned revenues. 2. Journalize the related adjusting entries at December 31, 2016 3. Post the journal and adjusting entries to the T-accounts, and show their balances at December 31, 2016. (Ignore the Cash account.) 4. Repeat Requirements 1-3. This time debit an expense account for prepaid expenses and credit a revenue account for unearned revenues. 5. Compare the account balances in Requirements 3 and 4. They should be equal. Print Done Choose from any list or enter any number in the input fields and then click Check Answer. 18 Pemaining Clear All