Brief Exercise 3-3 On July 1, 2017, Nash Co. pays $21,680 to Crane Insurance Co.

Question

Brief Exercise 3-3 On July 1, 2017, Nash Co. pays $21,680 to Crane Insurance Co. for a 4-year insurance policy. Both companies have fiscal years ending December 31. For Nash Co., journalize the entry on July 1 and the adjusting entry on December 31. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter O for the amounts. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Credit July 1 | Prepaid Insurance 21680 Cash 21680 Dec. 31 Insurance Expense Prepaid Insurance SHOW LIST OF ACCOUNTS LINK TO TEXT LINK TO TEXI

Explanation / Answer

Date Account titles and explanation Debit Credit July 1 Prepaid Insurance $21,680 Cash $21,680 Dec. 31 Insurance Expense $2,710 Prepaid Insurance($21,680 x 1/2 x 1/4) $2,710

Related Questions

Navigate

• Browse (All)
• Browse B
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.