On July 1, 2017 , Sandhill Co. pays $22,000 to Cullumber Company for a 2-year insurance contract. Both companies have fiscal years ending December 31.
For Sandhill Co., Journalize the entry on July 1 and adjusting entry on December 31.
Date Account Titles and Explanation Debit Credit

When Sandhill Co. pays we must decrease their cash account with the amount paid (credit entry) and increase the asset of insurance to the be enjoyed for 2 years (debit)

During the year 2017, one year insurance has been utilized. Therefore reduce the assets of Prepaid Insurance (credit) by recognizing an expense - Insurance expense (debit).

On July 1, 2017 , Sandhill Co. pays $22,000 to Cullumber Company for a 2-year insurance contract. Both companies have fiscal years ending December 31. For Sandhill Co., Journalize the entry on July 1 and adjusting entry on December 31. Date Account Titles and Explanation Debit Credit ____ ____

Respuesta :

Otras preguntas

On July 1, 2017 , Sandhill Co. pays $22,000 to Cullumber Company for a 2-year insurance contract. Both companies have fiscal years ending December 31.
For Sandhill Co., Journalize the entry on July 1 and adjusting entry on December 31.
Date Account Titles and Explanation Debit Credit