On July 1, 2017, Ling Co. pays $12,400 to Marsh Insurance Co. for a 2-year insurance contract. Both companies have fiscal years ending December 31. (a) Your answer is correct. For Ling Co., journalize the entry on July 1 and adjusting entry on December 31. (Record journal entries in the order presented in the problem. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.) (b) Date Account Titles and Explanation July 1 Prepaid Insurance Dec. 31 Cash Insurance Expense Prepaid Insurance Debit 12,400 3,100 Credit Attempts: 3 of 5 used Your answer is partially correct. For Ling Co., post the entries passed on July 1 and December 31. (Post entries in the order of journal entries presented in the previous part.) Prepaid Insurance 7/1 7/1 12,400 12/31 6,200 12/31 Bal. 6,200 12, 3,

Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter6: Cash And Receivables
Section: Chapter Questions
Problem 9RE: Refer to RE6-8. On April 23, 2020, McKinncy Co. receives a check, from Mangold Corporation for...
icon
Related questions
Question
not use ai please don't
On July 1, 2017, Ling Co. pays $12,400 to Marsh Insurance Co. for a 2-year insurance contract. Both companies have fiscal years
ending December 31.
(a)
Your answer is correct.
For Ling Co., journalize the entry on July 1 and adjusting entry on December 31. (Record journal entries in the order presented in the
problem. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically
indented when the amount is entered. Do not indent manually.)
(b)
Date
Account Titles and Explanation
July 1
Prepaid Insurance
Dec. 31
Cash
Insurance Expense
Prepaid Insurance
Debit
12,400
3,100
Credit
Attempts: 3 of 5 used
Your answer is partially correct.
For Ling Co., post the entries passed on July 1 and December 31. (Post entries in the order of journal entries presented in the previous
part.)
Prepaid Insurance
7/1
7/1
12,400
12/31
6,200
12/31 Bal.
6,200
12,
3,
Transcribed Image Text:On July 1, 2017, Ling Co. pays $12,400 to Marsh Insurance Co. for a 2-year insurance contract. Both companies have fiscal years ending December 31. (a) Your answer is correct. For Ling Co., journalize the entry on July 1 and adjusting entry on December 31. (Record journal entries in the order presented in the problem. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.) (b) Date Account Titles and Explanation July 1 Prepaid Insurance Dec. 31 Cash Insurance Expense Prepaid Insurance Debit 12,400 3,100 Credit Attempts: 3 of 5 used Your answer is partially correct. For Ling Co., post the entries passed on July 1 and December 31. (Post entries in the order of journal entries presented in the previous part.) Prepaid Insurance 7/1 7/1 12,400 12/31 6,200 12/31 Bal. 6,200 12, 3,
Expert Solution
steps

Step by step

Solved in 2 steps with 3 images

Blurred answer
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Intermediate Accounting: Reporting And Analysis
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
Century 21 Accounting General Journal
Century 21 Accounting General Journal
Accounting
ISBN:
9781337680059
Author:
Gilbertson
Publisher:
Cengage
Century 21 Accounting Multicolumn Journal
Century 21 Accounting Multicolumn Journal
Accounting
ISBN:
9781337679503
Author:
Gilbertson
Publisher:
Cengage
College Accounting (Book Only): A Career Approach
College Accounting (Book Only): A Career Approach
Accounting
ISBN:
9781337280570
Author:
Scott, Cathy J.
Publisher:
South-Western College Pub