Question 1 On July 1, 2017, Major Co. pays $12,600 to Cruz Insurance Co. for a 3

Question

Question 1 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. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Credit uly 1 Prepaid Insuranoe Cash Dec. 31 Insurance 2100 Prepaid Insurance 2200 Unearned Service Revenue Service Revenue

Explanation / Answer

Answer)

Unearned service revenue

Balance c/d

(Carried forward to balance sheet as current liability)

Service revenue account

Insurance expense $2100 Prepaid insurance $12600

Balance c/d

(Carried forward to balance sheet as current liability)

$10500

Related Questions

Navigate

• Browse (All)
• Browse Q
• Subjects

---

---

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