Date | Account Titles and Explanation | Debit | Credit |
July 1 | Prepaid insurance | $15,300 | |
Cash | $15,300 | ||
( To record advance payment for insurance) |
Date | Account Titles and Explanation | Debit | Credit |
Dec.31 | Insurance expense | $2,550 | |
Prepaid insurance | $2,550 | ||
( To record insurance expense for year 2021) |
Insurance expense for six months of year 2021 = 15,300 x 6/36
= $2,550
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