On July 1 2017 Grouper Co pays 13740 to Monty Insurance Co f

On July 1, 2017, Grouper Co. pays $13,740 to Monty Insurance Co. for a 3-year insurance policy. Both companies have fiscal years ending December 31. For Grouper Co., journalize the entry on July 1 and the adjusting entry on December 31.

Journal entry :

Date	accounts & explanation	debit	credit
2017 July 1	Prepaid insurance	13740
	Cash a/c		13740
	(To record prepaid insurance exp)

2017 Dec 31	Insurance expenses a/c (13740/36)*6	2290
	Prepaid insurance a/c		2290
	(To record adjusting entry)

On July 1, 2017, Grouper Co. pays $13,740 to Monty Insurance Co. for a 3-year insurance policy. Both companies have fiscal years ending December 31. For Grouper

On July 1 2017 Grouper Co pays 13740 to Monty Insurance Co f

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