Petra Co. wishes to record receipts and payments in such a manner that adjustments at the end of the period will NOT require reversing entries at the beginning of the next period.

Instructions

Rrecord the following transactions in the desired manner; as well, record the adjustments entry on December 31, 2019.

(Two entries for each part)

1. An insurance policy for two years was purchased on April 1, 2019 for $18000.

2. Rent of $12,000 for six months for a portion of the building was received on November 1, 2019.