On July $1,2017,$ Ling Co$.$ pays $$12,400$ to Marsh Insurance Co$.$ for a $2-$year insurance contract. Both companies have fiscal years

ending December $31.$

$($a$)$

Your answer is correct.

For Ling Co$.,$ journalize the entry on July $1$ and 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 O for the amounts. Credit account titles are automatically

indented when the amount is entered. Do not indent manually.$)$

Prepaid Insurance

Cash

Insurance Expense

Prepaid Insurance

$($b$)$

Your answer is partially correct.

For Ling Co$.,$ post the entries passed on July $1$ and December $31.($Post entries in the order of journal entries presented in the previous

part.$)$