Company Z sells annual subscription to their online magazine. Clients must pay a year subscriptions in advance. Company Z has a policy to prepare reversing entries when possible. It is also their policy to journalize all entries to income statements/ balance sheet.
A) on dec 1, company Z sold 5 annual susbciptions at 120 each. Cash was collected st the time of sale.
B) company Z paid 6000 for three months rent.
C)on june 30th, company Z purchase a two year fire insurance for 36000