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8 September, 03:34

On July 1, 2020, Whispering Co. pays $13,620 to Metlock Insurance Co. for a 3-year insurance policy. Both companies have fiscal years ending December 31. For Whispering Co., journalize the entry on July 1 and the adjusting entry on December 31.

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  1. 8 September, 06:58
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    jul-01 Prepaid expenses 13.620

    jul-01 Cash 13.620

    dec-31 Insurance policy expense 2.270

    dec-31 Prepaid expenses 2.270

    Explanation:

    Paid 1-jul 13620

    Three Years 13.620 36 months

    Monthly 378 month

    Current Year 2.270 6 months

    jul-01 Prepaid expenses 13.620

    jul-01 Cash 13.620

    dec-31 Insurance policy expense 2.270

    dec-31 Prepaid expenses 2.270
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