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    Orlow Co. pays $12,000 to Pizner Insurance Co.

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    BE3-5
    On July 1, 2006, Orlow Co. pays $12,000 to Pizner Insurance Co. for a 3-year insurance contract. Both companies have fiscal years ending December 31. For Orlow Co., journalize and post the entry on July 1 and the adjusting entry on December 31.
    Prepare adjusting entry for prepaid expense

    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.

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    Solution Preview

    BE3-5
    On July 1, 2006, Orlow Co. pays $12,000 to Pizner Insurance Co. for a 3-year insurance contract. Both companies have fiscal years ending December 31. For Orlow Co., journalize and post the entry on July 1 ...

    Solution Summary

    This solution is comprised of journal entry and adjusting entry for Orlow Co. and Pizner Insurance Co.

    $2.19

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