Question

Practice Assignment Gradebook ORION Downloadable eTextbook gnment CALCULATOR MESSAGE MY INSTRUCTOR FULL SCREEN PRINTER VERSION 4 BACK NE Brief Exercise 4-6 (Part Level Submission) On July 1, 2017, Sandhill Co. pays $16,500 to Pharoah Company for a 1-year insurance contract. Both companies have fiscal years ending December 31. (a) For Sandhill Co., 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 o for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit Date SHOW LIST OF ACCOUNTS LINK TO TEXT INTERACTIVE TUTORIAL By accessing this Question Assistance, you will learn while you earn points based on the Point Potential Policy set by your instructor. SAVE FOR LATER SUBMIT ANSWER Attempts: 0 of 2 used

Answer 1

Date	Accounting and explanation	Debit	Credit
July 1	Prepaid Insurance	$ 16,500
	Cash		$ 16,500
	(To record the Prepaid Insurance )
December 31	Insurance Expense ( $ 16,500 x 6 / 12 )	$ 8,250
	Prepaid insurance		$ 8,250
	(To record the Insurance expense )