On July 1, 2007, Lumas Co. pays $13,500 to Patel Insurance Co. for a 4-year insurance contract. Both companies have fiscal years ending December 31. For Patel Insurance Co. journalize and post the entry on July 1 and the adjusting entry on December 31 to all accounts except cash. (When preparing the T-accounts, list balance sheet accounts first and put a 0 in any column that does not require a posting.)
I got this, is it correct?
july 1 debit -cash 13500
Cr.-prepaid insurrance 13500
Dec 31 Debit prepaid insurrance 1688
Cr. insurance expense 1688
Insurance expense
July 1 13500, 0
Dec 31 0, 1688
End Balance. 11812, 0
Prepaid insurrance
july 1 0 , 0
dec 31 1688, 0
ending balance 1688 , 0
2007-10-03
18:43:11
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2 answers
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asked by
kimtrong52
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