Financial & Managerial Accounting 17th Edition by Jan Williams ,Susan Haka,Mark Bettner,Joseph Carcello

تمرين 45

Prepaid Expenses and Unearned Revenue
On November 1, Girtz Corporation purchased a six-month insurance policy from The Tomptee Agency for $4,500.
a. Prepare the necessary adjusting entry for Girtz Corporation on November 30, assuming it recorded the November 1 expenditure as Unexpired Insurance.
b. Prepare the necessary adjusting entry for The Tomptee Agency on November 30, assuming it recorded Girtz's payment as Unearned Insurance Premiums.