On July 1, 2022., Pharoah Company pays $15.000 to Blossom Company for a 2-year insurance contract. Both companies have fiscal years ending December 31. (a1) Your answer is partially correct. For Pharoah Company, journalize the entry on July 1 and the annual 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 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit July 1 Prepaid Inurance 15000 Cash 15.000 Dec. 31 : tesurance Expense Prepaid Insurance
On July 1, 2022., Pharoah Company pays $15.000 to Blossom Company for a 2-year insurance contract. Both companies have fiscal years ending December 31. (a1) Your answer is partially correct. For Pharoah Company, journalize the entry on July 1 and the annual 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 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit July 1 Prepaid Inurance 15000 Cash 15.000 Dec. 31 : tesurance Expense Prepaid Insurance
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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need help with Dec 31
Transcribed Image Text:On July 1, 2022, Pharoah Company pays $15.000 to Blossom Company for a 2-year insurance contract. Both companies have fiscal
years ending December 31.
(a1)
Your answer is partially correct.
For Pharoah Company, journalize the entry on July 1 and the annual 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 0 for the
amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.)
Date
Account Titles and Explanation
Debit
Credit
July 1
Prepaid Inurance
15000
Cash
15.000
Dec. 31:
Insuraince Expense
Prepaid Isurance
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