Prepayments, Collections in Advance

Greensboro Properties Inc. owns a building in which it leases office space to small businesses and professionals. During the year, Greensboro Properties engaged in the following transactions:

On March $1,$ Greensboro Properties paid $$11,640$ in advance to Patterson Insurance Company for $1$ year of insurance beginning March $1.$ The full amount of the prepayment was debited to prepaid insurance.

On May $1,$ Greensboro Properties received $$35,760$ for $1$ year$$s rent from Angela Cottrell, a lawyer and new tenant. Greensboro Properties credited unearned rent revenue for the full amount collected from Cottrell.

On July $31,$ Greensboro Properties received $$240,000$ for $6$ months$$ rent on an office building that is occupied by Newnan and Calhoun, a regional accounting firm. The rental period begins on August $1.$ The full amount received was credited to unearned rent revenue.

On November $1,$ Greensboro Properties paid $$4,500$ to Pinkerton Security for $3$ months$$ security services beginning on that date. The entire amount was debited to prepaid security services.

Required:

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$1.$ Prepare the journal entry to record the receipt or payment of cash for each of the transactions. If an amount box does not require an entry, leave it blank.

Mar. $1$

May $1$

July $31$

Nov. $1$

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$2.$ Prepare the adjusting entries you would make at December $31,2019,$ for each of these items. If an amount box does not require an entry, leave it blank.

a$.$

Dec. $31$

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b$.$

Dec. $31$

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c$.$

Dec. $31$

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d$.$

Dec. $31$

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$3.$ Conceptual Connection: What would be the total effect on the income statement and balance sheet if these entries were not recorded? Input all amounts as positive values.

a$.$

b$.$

c$.$

d$.$

Revenues

by $fill in the blank $5$be$935$feeffcfc$7\_6$

Expenses

by $fill in the blank $5$be$935$feeffcfc$7\_8$

Net income

by $fill in the blank $5$be$935$feeffcfc$7\_10$

Assets

by $fill in the blank $5$be$935$feeffcfc$7\_12$

Liabilities

by $fill in the blank $5$be$935$feeffcfc$7\_14$

Retained earnings

by $fill in the blank $5$be$935$feeffcfc$7\_16$