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On June 1, 2024, Susan Ltd. pays $7,080 to Colada Insurance Corp. for a one-year insurance policy. Both companies have fiscal years ending December 31 and adjust their accounts annually.

On June 1, 2024, Susan Ltd. pays $7,080 to Colada Insurance Corp. for a one-year insurance policy. Both companies have fiscal years ending December 31 and adjust their accounts annually.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Prepare the adjusting entry required on December 31 by (1) Susan and (2) Colada. (Credit account titles are automatically indented when amount is entered. Do not indent manually. List debit entries before credit entries. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) (1) Susan Ltd. Date Dec. 31 Account Titles and Explanation Insurance Expense Dec. 31 Prepaid Insurance (2) Colada Insurance Corp. Date Account Titles and Explanation Insurance Revenue Deferred Revenue Debit Debit 4130 4130 Show Transcribed Text Credit Credit 4130 4130 On June 1, 2024, Susan Ltd. pays $7,080 to Colada Insurance Corp. for a one-year insurance policy. Both companies have fiscal years ending December 31 and adjust their accounts annually.
Transcribed Image Text:Prepare the adjusting entry required on December 31 by (1) Susan and (2) Colada. (Credit account titles are automatically indented when amount is entered. Do not indent manually. List debit entries before credit entries. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) (1) Susan Ltd. Date Dec. 31 Account Titles and Explanation Insurance Expense Dec. 31 Prepaid Insurance (2) Colada Insurance Corp. Date Account Titles and Explanation Insurance Revenue Deferred Revenue Debit Debit 4130 4130 Show Transcribed Text Credit Credit 4130 4130 On June 1, 2024, Susan Ltd. pays $7,080 to Colada Insurance Corp. for a one-year insurance policy. Both companies have fiscal years ending December 31 and adjust their accounts annually.
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