Accounting T-account?

Question

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

Answer 1

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.
July 1
Dr Cash 13,500
Cr Unearned insurance premium 13,500

Dec 31
Dr Unearned insurance premium 1687.50
Cr Insurance premium revenue 1687.50

Unearned insurance premium
July 1 0, 13500
Dec 31 1687.50, 0
End bal. 11812.50 (Credit)

Insurance premium revenue
July 1 0, 0
Dec 31 0, 1,687.50
End bal. $1,687.50 (Credit)

It's a revenue, not an expense. You're doing this from Patel Insurance Co.'s point of view. Patel is an insurance co. It makes its money from collecting insurance premiums. It's only an expense from Lumas Co.'s point of view.

Answer 2

i think cash is credit becuz it was paid not received, i already did this about 1 month ago tho so mayb i 4got abt it.