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Business, 13.02.2020 18:48 ksiandua07

The prepaid insurance account shows a debit of $6,864, representing the cost of a 2-year fire insurance policy dated August 1 of the current year. 2. On November 1, Rent Revenue was credited for $1,872, representing revenue from a subrental for a 3-month period beginning on that date. 3. Purchase of advertising materials for $732 during the year was recorded in the Advertising Expense account. On December 31, advertising materials of $285 are on hand. 4. Interest of $715 has accrued on notes payable.

Prepare the following in general journal form.
(a) The adjusting entry for each item.
(b) The reversing entry for each item where appropriate.

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