On July 1, 2025, Swifty Co. pays $14,328 to Nash Insurance Co. for a 3-year insurance policy. Both companies have fiscal year December 31. Journalize the entry on July 1 and the adjusting entry on December 31 for Nash Insurance Co. Nash uses the ad Unearned Service Revenue and Service Revenue. (Credit account titles are automatically indented when amount is entered. Do not manually. If no entry is required, select "No entry" for the account titles and enter O for the amounts. Record journal entries in the order presented in the problem. List all debit entries before credit entries.) Date July 1 Dec. 31 V Account Titles and Explanation Prepaid Insurance Cash Insurance Expense Prepaid Insurance Debit 14,328 $4,776 Credit
On July 1, 2025, Swifty Co. pays $14,328 to Nash Insurance Co. for a 3-year insurance policy. Both companies have fiscal year December 31. Journalize the entry on July 1 and the adjusting entry on December 31 for Nash Insurance Co. Nash uses the ad Unearned Service Revenue and Service Revenue. (Credit account titles are automatically indented when amount is entered. Do not manually. If no entry is required, select "No entry" for the account titles and enter O for the amounts. Record journal entries in the order presented in the problem. List all debit entries before credit entries.) Date July 1 Dec. 31 V Account Titles and Explanation Prepaid Insurance Cash Insurance Expense Prepaid Insurance Debit 14,328 $4,776 Credit
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:On July 1, 2025, Swifty Co. pays $14,328 to Nash Insurance Co. for a 3-year insurance policy. Both companies have fiscal years ending
December 31. Journalize the entry on July 1 and the adjusting entry on December 31 for Nash Insurance Co. Nash uses the accounts
Unearned Service Revenue and Service Revenue. (Credit account titles are automatically indented when amount is entered. Do not indent
manually. If no entry is required, select "No entry" for the account titles and enter O for the amounts. Record journal entries in the order
presented in the problem. List all debit entries before credit entries.)
Date
July 1
Dec. 31
V
Account Titles and Explanation
Prepaid Insurance
Cash
Insurance Expense
Prepaid Insurance
Debit
14,328
$4,776
Credit
14,328
$4,776
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