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,

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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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,
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