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Dennis_Churaev [7]
3 years ago
13

On July 1, 2020, Pearl Co. pays $13,620 to Martinez Insurance Co. for a 3-year insurance policy. Both companies have fiscal year

s ending December 31. Journalize the entry on July 1 and the adjusting entry on December 31 for Martinez Insurance Co. Martinez uses the accounts Unearned Service Revenue and Service Revenue.
Business
1 answer:
Sati [7]3 years ago
8 0

Answer:

Explanation:

The journal entry is shown below:

1st July Debit Prepaid insurance $13620

Credit Cash $13620

31st December Debit Insurance expenses $2270

Credit Prepaid insurance $2270

Insurance expense was calculated as:

= $13620/3 years × 6months/12months

= $4540 × 1/2

= $2270

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8 0
4 years ago
On June 1 of Year 1, a company paid $2,400 cash to rent office space for one year beginning immediately. Based solely on this in
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With an assumption that the company's accounting year is same as the calender year, the income statement would show $1,000 of rent expense.

<h3>What is an income statement?</h3>

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2 years ago
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Information must be protected and kept secure to protect the company's intellectual property.

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