On July 1, 2022. Ling Co. pays $12.400 to Marsh Insurance Co for a 2-year Insurance contract.
Discipline: Accounting
Type of Paper: Question-Answer
Academic Level: Undergrad. (yrs 3-4)
Paper Format: APA
Pages: 1
Words: 275
Question
Expert Answer
Step 1/2
Requirement 1:
Journalizing adjusting entries:
Date | Account Titles and Explanation | Debit | Credit |
July.01 | Prepaid Insurance | $12,400 | |
Cash | $12,400 | ||
(To record prepaid insurance) | |||
Dec.31 | Insurance expense [12400*1/2*6/12] | $3,100 | |
Prepaid Insurance | $3,100 | ||
(To record insurance expense) |
Step 2/2
Final answer
The solution is provided in above steps