Ask Question
BusinessBusiness
16 July, 01:48

On July 1, 2017, Blossom Co. pays $10,960 to Blue Insurance Co. for a 2-year insurance policy. Both companies have fiscal years ending December 31. Journalize the entry on July 1 and the adjusting entry on December 31 for Blue Insurance Co. Blue uses the accounts Unearned Service Revenue and Service Revenue

+3
Answers (1)
  1. 16 July, 02:13
    0
    Debit Unearned Revenue $5,480

    Credit Revenue $5,480

    Explanation:

    On December 31, 6 months has been passed so, the revenue of 6 months should be recorded as the payment was recorded as unearned revenue on July 1. The revenue account will be credited by the 6 months revenue amount and unearned revenue account will be debited to reduce the amount by the six month accrual.

    Total Unearned revenue = $10,960

    Unearned revenue per month = $10,960 / 12 = $913.33

    revenue for six months = 913.33 x 6 = $5,480
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “On July 1, 2017, Blossom Co. pays $10,960 to Blue Insurance Co. for a 2-year insurance policy. Both companies have fiscal years ending ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers
You Might be Interested in
ABO purchased a truck at the beginning of 2020 for $140,000. They sold the truck at the end of 2022 for $95,000.
Answers (1)
When is the most important information given in a newscast? At the end At the beginning In the middle On the 15-minute mark
Answers (1)
Assume you make $54,000/year ($4,500/month) and save 10% of your monthly salary ($450/month) in your 401-k account. your employer will match 5% of your salary per month (at the end of the month) and deposit it in your 401-k account for 30 years.
Answers (1)
Why might a bank offer to make a loan to a customer at a low initial rate that will increase after a set period of time?
Answers (2)
The current asset section of Stibbe Pharmaceutical Company's balance sheet included cash of $37,000 and accounts receivable of $57,000. The only other current asset is inventories. The company's current ratio is 2.5 and its acid-test ratio is 2.0.
Answers (1)
New Questions in Business
Alamos Co. exchanged equipment and $18,900 cash for similar equipment. The book value and the fair value of the old equipment were $81,300 and $91,400, respectively.
Answers (1)
If the market price for a chair is $24 and the marginal cost for the chai is $7, the marginal revenue from the chair would be?
Answers (1)
Which best describes the difference between sole proprietorships and partnerships?
Answers (1)
After totaling the receipts in the petty cash box, Kelly Garrett Detective Agency spent $65 on Office Supplies and $145 on Auto Expense. The journal entry to record the reimbursement to the petty cash fund would include:a.
Answers (2)
A country reported nominal GDP of $200 billion in 2010 and $180 billion in 2009. It also reported a GDP deflator of 125 in 2010 and 105 in 2009. Between 2009 and 2010, how much did prices increase?
Answers (1)
Home » Business » On July 1, 2017, Blossom Co. pays $10,960 to Blue Insurance Co. for a 2-year insurance policy. Both companies have fiscal years ending December 31. Journalize the entry on July 1 and the adjusting entry on December 31 for Blue Insurance Co.
Sign Up Forgot Password?