Homework Answers
Answer:
|
WINDSOR INC. JOURNAL ENTRIES |
|||
| Date | Account Title and Explanation | Debit $ | Credit $ |
| July 1 | Prepaid Insurance | 15,300 | |
| Cash | 15,300 | ||
| (To record prepaid insurance) | |||
| Dec. 31 | Insurance Expense | 2,550 | |
| Prepaid Insurance | 2,550 | ||
|
(To record Insurance expense) ($15,300/36 months) * 6 months = $2,550 |
Prepaid insurance
| July 1 | 15,300 | Dec. 31 | 2,550 |
| Dec. 31 | 12,750 |
Insurance expense
| Dec. 31 | 2,550 |
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