Question

on July 1st cullumber company pays 12000 to kalter in

Return to Blackboard IS Weygandt, Financial and Managerial, de Helo i System Announcements Brief Exercise 3-05 Your answer is partially correct. Try again. On July 1, 2020, Cullumber Company pays $12,000 to Kalter Insurance Co. for 3 year insurance contract. Both companies have fiscal years ending December 31. For Cullumber Company, journal and post the entry on July 1 and the annual adjusting entry on December 31. ( Cre a re automatically indent Record journal entries in the order presented in the problem.) Date Account Titles Prepaid Insurance July 1 TCash 1 Dec. 31 Insurance Expense T Pro Prepaid Insura 1 12000 12/31 16000 112/21 - 12/31 4000

Answer 1

Date	Account Titles	Debit ($)	Credit ($)
1-Jul-20	Prepaid insurance A/c	12000
	To Cash		12000
31-Dec-20	Insurance expense A/c	2000
	To Prepaid insurance A/c		2000
	12000/3*6/12
Prepaid insurance
1-Jul-20	12000	31-Dec-20	2000
12/31/2020 Bal	10000
Insurance expense
31-Dec-20	2000