Question

On July 1, 2020, Pina Colada Corp. pays $19,500 to Kalter Insurance Co. for a 3-year insurance contract. Both companies have fiscal years ending December 31. Journalize and post the entry on July 1 and the adjusting entry on December 31 for Kalter Insurance Co. Kalter uses the accounts Unearned Service Revenue and Service Revenue. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.)

Brief Exercise 3-06 Your answer is partially correct. Try again. On July 1, 2020, Pina Colada Corp. pays $19,500 to Kalter Insurance Co. for a 3-year insurance contract. Both companies have fiscal years ending December 31. Journalize and post the entry on July 1 and the adjusting entry on December 31 for Kalter Insurance Co. Kalter uses the accounts Unearned Service Revenue and Service Revenue. (Credit account titles are automatically indented when the amount is entered. not indent manually. Record journal entries in the order presented in the problem.) Date Account Titles Debit Credit July 1 Prepaid Insurance 195001 Cash Dec. 31 Insurance Expense 2 C C 19500 3250 13250 Prepaid Insurance Unearned Service Revenue 19500 3250 12/31 Bal. 16250 Service Revenue 12/31 3250 Click if you would like to Show Work for this question: Open Show Work

Answer 1

Solution:

B F УИ AR Credit Date Accounting and explanation 01-Jul Cash Unearned service Revenue Debit 19500 19500 3250 10 11 31-Dec Unearned service Revenue (19500x6/36) Service Revenue 3250 12 13 unearned service revenue Dec-31 3250 01-Jul 12/31 bal. 16250 19500 service revenue Dec-31 3250 19 20 21 22 23 24 et265 Sheet266 ) Sheet234 Sheet212 Sheet213 Sheet215 Sheet218 Sheet220