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https//edugen wileyplus.com/edugen/student/mainfr.uni Bankin American Express Cr

ID: 2330014 • Letter: H

Question

https//edugen wileyplus.com/edugen/student/mainfr.uni Bankin American Express Cre Honda Financial Servi Descover-Card Servi Facebook-Log In or P Pandora Radio-Liste nt n Pobka i Sw S Weygandt, Financial and Managerial, 3e Financial and Managerial Accounting (ACC actice Assignment Gradebook ORION Downloadable eTextbook gnment Brief Exercise 3-05 $14,400 to Kalter Insurance Co. for a 3-year insurance contract. Both companies have fiscal years ending December 33 For Dobbs Co., journalize and post the entry on July 1 and the annual adjusting entry on December 31. manually. Record journal entries in the order account titles are automatically indented when the amount is entered, Do no presented in the problem.) Date Account Titles Credit Prepaid Insurance Insurance Expense Click if you would like to Show Work for this question: 9n Sho Wrk All Rights Reserved a

Explanation / Answer

Date

Account Titles

Debit

Credit

1 July 2020

Prepaid Insurance

$14,400

                Cash

$14,400

Prepaid a three year insurance policy

31 Dec 2020

Insurance Expense

$4,800

               Prepaid Insurance

$4,800

To adjust prepaid insurance to reflect portion

expired ( $ 14,400/3 = $ 4,800)

Prepaid Insurance

Debit

Credit

$14,400

$4,800

$9,600

Prepaid Expenses       

$4,800

Date

Account Titles

Debit

Credit

1 July 2020

Prepaid Insurance

$14,400

                Cash

$14,400

Prepaid a three year insurance policy

31 Dec 2020

Insurance Expense

$4,800

               Prepaid Insurance

$4,800

To adjust prepaid insurance to reflect portion

expired ( $ 14,400/3 = $ 4,800)