***READ THE SPECIFIC INSTRUCTIONS BELOW ON HOW TO FORMAT YOUR ANSWERS***

C'est Cheese has a calendar year-end. The following transactions occurred during the year:

• On November 1, it paid for a 6-month advertising contract for $1,350. You may assume an equal amount of the advertising is used up for each month the policy is valid.
• On December 1, it received $2,348 from a customer for prepaid catering services. The customer will be receiving the catering services in an equal amount for the next four (4) consecutive months.
• On December 8, it billed $566 for cheese which a customer had purchased. The customer paid the bill in full on December 15.
• On December 12, it received an invoice from the telephone company for $271. It paid the invoice on December 21.

QUESTIONS:

1. For each transaction, prepare the journal entry to record the initial transaction. Make sure to properly format your journal entry. (HINT: there are four entries you must make.) (Each correct journal entry is worth 1 point.)
2. For each transaction, prepare any necessary adjusting journal entry as of December 31 (or any other applicable date provided). Make sure to properly format your journal entry. You may properly assume no adjusting entries have been prepared at the end of each month previously. (HINT: there are four entries you must make.) (Each correct journal entry is worth 1 point.)

SPECIFIC INSTRUCTIONS: For each journal entry, type your response in the following format:

DR (account name) $(amount) CR (account name) $(amount)

For example, if you are making an entry to debit Cash for $100 and credit Accounts Payable for $100, you would enter the following:

DR Cash $100 CR Accounts Payable $100