Brief Exercise 3-05 Your answer is partially correct. Try again. On July 1, 2019, Crane Co. pays $21,400 to Novak Insurance Co. for a 4-year insurance contract. Both companies have fiscal years ending December 31. For Crane Co., journalize and post the entry on July 1 and the adjusting entry on December 31. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Record journal entries in the order presented in the problem. Date Account Titles and Explanation Debit Credit July 1 Prepaid Insurance 21,400 Cash 21.400 Dec. 31 Insurance Expense > 2,675 > Prepaid Insurance 2,675 Prepaid Insurance lol Insurance Expense Clic