Ok I almost finished it but still got 2 questions which I cant answer and I have no time to read the chapter for the 3rd time. So please accountants out there help.
1)The Prepaid Insurance account shows the following entries on June 30:
Beginning Balance $ 1,530
January 1 $2,900
May 1 $3,366
The beginning balance represents the unexpired portion of a one-year policy purchased the previous year. The January 1 entry represents a new one-year policy, and the May 1 entry represents the additional coverage of a three-year policy.
Insurance Expense?
Prepaid Expense?
2)On June 1, the company completed negotiations with another client and accepted a payment of $ 21,000, representing one year’s services paid in advance. The $ 21,000 was credited to Services Collected in Advance.
Services Collected in Advance?
Service Revenue?
Thanks. 10 Points to the person who does this.