For each of the following independent situations, prepare journal entries to rec

Question

For each of the following independent situations, prepare journal entries to record the initial transaction on September 30 and the adjustment required on October 31.
1. Hockey Helpers paid $ 2,000 cash on September 30, to rent an arena for the months of October and November.
2. Super Stage Shows received $6,000 on September, for season tickets that admit patrons to a theatre event that will be held twice (on October 31 and November 30).
3. Risky Ventures paid $3,000 on September 30, for insurance coverage for the month of October, November and December.

Explanation / Answer

1) Sep.30 Prepaid Rent 2000 Cash 2000 Oct. 31 Rent Expance 1000 Prepaid Rent 1000 Nov. 30 Rent Expamce 1000 Prepaid Rent 1000 2) Sep.30 Cash 6000 Unearned Rev 6000 Oct.31 Unearned Rev 3000 Revenue 3000 Nov. 30 Unearned Rev 3000 Revenue 3000 3) Sep.30 Prepaid Insurance 3000 Cash 3000 Oct 31 Insarance Expance 1000 Prepaid Insurance 1000 Nov31 and Dec 31 Same entries as Oct 31

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