On July 1, 2022, Blossom Company pays $18,000 to Sunland Company for a 2-year insurance contract. Both companies have fiscal years ending December 31.(a1)  For Blossom Company, journalize the entry on July 1 and the annual 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 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.)DateAccount Titles and ExplanationDebitCreditchoose a transaction date                                                                       July 1Dec. 31enter an account titleenter a debit amountenter a credit amount enter an account titleenter a debit amountenter a credit amountchoose a transaction date                                                                       July 1Dec. 31enter an account titleenter a debit amountenter a credit amount enter an account titleenter a debit amountenter a credit amount

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Asked Sep 12, 2019
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On July 1, 2022, Blossom Company pays $18,000 to Sunland Company for a 2-year insurance contract. Both companies have fiscal years ending December 31.

(a1)

 
 
For Blossom Company, journalize the entry on July 1 and the annual 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 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.)

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
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Step 1

Record the payment made for insurance for...

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Account title and explanation Debit (S) Credit (S) Date July 1, 2022 Prepaid insurance 18,000 18,000 Cash (To record the payment of insurance for 2 years contract)

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