On March 1, 2017, Big North Insurance received $4,800 cash from Eire Co. for a one-year insurance policy. Big North Insurance has an October 31 fiscal year end and adjusts accounts annually. Complete the following for Big North Insurance.
(a) Prepare the March 1, 2017, journal entry.
(b) Calculate the amount of revenue earned during 2017 and the amount unearned at October 31, 2017.
(c) Prepare the adjusting entry required on October 31, 2017.
(d) Using T accounts, post the entries for parts (a) and (c) above and indicate the adjusted balance in each account. It is not necessary to create a T account for Cash.