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BE3-6 Using the data in BE3-5, journalize and post the entry on July 1 and the adjusting entry on December 31 for Cruz Insura need help with be3-6
BE3-5 On July 1, 2017, Major Co. pays $15,120 to Cruz Insurance Co. for a 3-year insur- ance contract. Both companies have fi
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Answer #1

3-5) Adjusting entry

Date account and explanation Debit Credit
Jul 1 Prepaid insurance 15120
Cash 15120
Dec 31 Insurance expense (15120/36*6) 2520
Prepaid insurance 2520

T account

Prepaid insurance
Jul 1 15120
Dec 31 (adjusting) 2520
Dec 31 balance 12600
Insurance expense
Dec 31 2520
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