On July 1 2014 Blondie Ltd pays 18 000 to No
On July 1, 2014, Blondie Ltd. pays $18,000 to No Claims Insurance Ltd. for a three-year insurance contract.
Both companies have fiscal years ending December 31. Prepare two sets of journal entries for Blondie, with each set of journal entries recording the July I, 2014 entry and the December 31, 2014 adjusting entry. Treat the expenditure as an asset in the first set of journal entries, and treat the expenditure as an expense in the second set of journal entries.
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