Question

On July 1, 2017, Pharoah Company pays $24,000 to Crane Company for a 1-year insurance contract. Both companies have fiscal years ending December 31 For Pharoah Company. journalize the entry on July 1 and adjusting entry on December 31. (Record journal entries in the order presented in the problem. If no entry is required, select "No Entry for the account titles and enter for the amounts. Credit account titles are automatically indented when the amount is entered. De not indent manually.) Date Account Titles and Explanation Debit Credit e Textbook and Media List of Accounts For Pharoah Company, post the entries passed on July 1 and December 31. (Post entries in the order of journal entries presented in the previous port Prepaid Insurance Insurance Expense

Answer 1

| Credit Date July 01 Debit 24,000 $ Account Titles and Explanation Prepaid Insurance Cash Insurance Expense ($24,000 * 6/12) Prepaid Insurance $ 24,000 Dec. 31 $ 12,000 $ 12,000 $ 12,000 July 01 Dec. 31 $ $ Prepaid Insurance 24,000 Dec. 31 12,000 Insurance Expense 12,000 | Dec. 31 $