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HOMEWORK: CHAPTER 3 PART 2

Question 4

On July 1, 2022, Major Co. pays $15,120 to Mesa Insurance Co. for a 4-year insurance contract. Both companies have fiscal years ending December 31. For Major Co., journalize and post the entry on July 1 and the annual adjusting entry on December 31. (List all debit entries before credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.)

Date	Account Titles and Explanation	Debit	Credit
choose a transaction date July 1Dec. 31	enter an account title	enter a debit amount	enter a credit amount
	enter an account title	enter a debit amount	enter a credit amount
choose a transaction date July 1Dec. 31	enter an account title	enter a debit amount	enter a credit amount
	enter an account title	enter a debit amount	enter a credit amount

Prepaid Insurance
enter a credit balance 7/112/3112/31 Bal.	enter a debit amount	enter a credit balance 7/112/3112/31 Bal.	enter a credit amount
enter a credit balance 7/112/3112/31 Bal.	enter a debit balance	enter a credit balance 7/112/3112/31 Bal.	enter a credit balance
Insurance Expense
enter a credit balance 7/112/3112/31 Bal.	enter a debit amount	enter a credit balance 7/112/3112/31 Bal.	enter a credit amount