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5 points Al-Ain Co. had the following transactions in the last...

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Accounting

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5 points Al-Ain Co. had the following transactions in the last few months of its fiscal year ended on December 31st. RECORDING ENTRIES: - Sep. 1 Received 55,800 cash to perform future consulting services for an industrial client. Sep 1 Paid in advance 54,800 cash for 6 months of office rent expense through February 28th of the next year. Sep 30 Paid 4,200 cash to a law firm for future legal services to be received Oct 1 Paid 55,450 cash for future newspaper advertising. Oct 31 Salaries expenses amounting $2,900 for the month of October are paid at the end of the month. Nov 15 Purchased office furniture amounting 59,300 and paid by cash. ADJUSTING ENTRIES: Dec 31 The company has performed $3,400 of services that the customer paid for on Sep. 1. Dec 31 Rental office has been used for 3,200 (4 months) from September 1 to December 31st. An adjusting entry is required to this effect. Required: - a) Prepare recording entries during the year for these transactions under the method that records prepaid expenses and weaned revenues at the time cash is paid or received in the balance sheet accounts. (3 marks) b) Alvo prepare two of the given adjusting entries mentioned above at the end of the year on Dec 31st. (2 marks)

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