Question

your answer is partially correct. Try again. On July 1, 2019, Novak Corp. pays $25,500 to Kalter Insurance Co. for a 3-year insurance contract. Both companies have fiscal years ending Decem For Novak Corp. journalize and post the entry on July 1 and the annual adjusting entry on December 31. (Credit account titles are automaticall journal entries in the order presented in the problem.) Date Account Titles Debit Credit July 1 Prepaid Insurance 25.500 cash 25,500 Dec. 31 Insurance Expense Prepaid Insurance 25.500 12/31 Insurance Expense 12/33 Click if you would like to show Work for this question: Den showers

Answer 1

Credit Adjusting Entries Date Account Titles Debit 01-Jul Prepaid Insurance $ 25,500 Cash $ 25,500 $ 4,250 ($ 25,500 / 36 Months) * 6 Months 31-Dec Insurance Expense Prepaid Insurance $ 4,250 Insurance expense is recorded for 6 Months from July to December. $ Prepaid Insurance 25,500 31-Dec 21,250 01-Jul 31-Dec 4,250 $ $ Insurance Expense 4,250 31-Dec $