Unformatted text preview: contract. Both companies have fiscal years ending December 31. For Orlow Co. journalize and post the entry on July and the adjusting entry on December 31. Prepare adjusting entry for prepaid expense. July 1 Prepaid expense 12,000 Cash 12,000 Dec. 31 Insurance expense 2,000 Prepaid expense 2,000 (12,000/36 months x 6=2,000) BE3-6 Using the data in BE3-5, journalize and post the entry on July 1 and the adjusting entry on December 31 for Pizner Insurance Co. Pizner uses the accounts Unearned Insurance Revenue and Insurance Revenue. July 1 Cash 12,000 Unearned Ins Revenue 12,000 Dec. 31 Unearned Ins Revenue 2,000 Insurance Revenue 2,000 (12,000/36 months x 6=2,000)...
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- Spring '08
- Trial Balance, ........., Generally Accepted Accounting Principles, Pizner Insurance Co.