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ACCT1100-Garcia Company had the following selected transactions during the year.

Author:
June 7th, 2024

Garcia Company had the following selected transactions during the year.Jan.1The company paid $6,000 cash for 12 months of insurance coverage beginning immediately for the calendar year.May1The company received $2,400 cash in advance for 6 months of contracted services commencing on May 1 and concluding on October 31.Dec.31The company prepared any necessary year-end adjusting entries related to insurance coverage and services rendered.a. Record journal entries for these transactions assuming Garcia follows the usual practice of recording a prepayment of an expense in an asset account and recording a prepayment of revenue received in a liability account.

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