Problem 1 Recording prepaid expenses and unearned revenues Al-Ahmad Co. had the following transactions in the last two months of its fiscal year ended May 31. Ap 1 Paid $5,450 cash to an accounting firm for future consulting services. r. 1 Paid $3,600 cash for 24 months of insurance through March 31 of the next year. 3 Received $9,500 cash for future services to be provided to a customer. 0 Ma 1 Paid $5,000 cash for future newspaper advertising. 2 Received $12,450 cash for future services to be provided to a customer. 3 3 Of the consulting services paid for on April 1, $3,000 worth has been received. 1 3 A portion of the insurance paid for on April 1 has expired. No adjustment was made in April to 1 Prepaid Insurance. 3 Services worth $4,600 are provided to the customer who paid on April 30. 1 3 Of the advertising paid for on May 1, $2,050 worth is used. 1 3 The company has performed $6,500 of services that the customer paid for on May 23. 1 Required: - 1) Prepare recording entries during the year for these transactions under the method that records prepaid expenses and unearned revenues at the time cash is paid or received in the balance sheet accounts. 2) Also prepare adjusting entries at the end of the year