I have 15 min left to answer those questions!!! Brief Exercise 3-5 On July 1, 20

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I have 15 min left to answer those questions!!!

Brief Exercise 3-5 On July 1, 2017, Major Co. pays $21,000 to Cruz Insurance Co. for a 3-year insurance contract. Both companies have fiscal years ending December 31. For Major Co., ournalize and post the entry on ?uly 1 and the annual adjusting entry on December 31 Credit account tites are automat can ind ented the problem.) Date Account Titles and Explanation Credit Prepaid Insurance Insurance Expense Brief Exercise 3-6 On July 1, 2017, Major Co. pays $12,600 to Cruz Insurance Co. for a 3-year insurance contract. Both companies have fiscal years ending December 31 Journalize and post the entry on July 1 and the adjusting entry on December 31 for Cruz Insurance Co. Cruz uses the accounts Unearned Service Revenue and Service Revenue. (Credi indent manually. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Credit Unearned Service Revenue Service Revenue 12/31 12/31 Bal y accessing this Question Assistance, you will learn while you earn points based on the Point Potential Policy set by your instructor.

Explanation / Answer

Date Account titles & Explanations Debit Credit 7/1/2017 Prepaid insurance 21,000 cash 21,000 31-Dec insurance expense 3500 prepaid insurance 3,500 (21000/36)*6 prepaid insurance 7/1/2017 21,000 12/31/2017 3,500 12/31 bal 17,500 insurance expense 12/31/2017 3,500 12/31 bal 3,500 Ex 3-6 Date Account titles & Explanations Debit Credit 7/1/2017 cash 21,000 unearned service recenue 21,000 31-Dec unearned service revenue 3500 service revenue 3,500 (21000/36)*6 unearnred service revenue 12/31/ 3,500 7/1/2017 21,000 12/31 bal 17,500 Service revenue 31-Dec 3,500 12/31 bal 3,500

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