Brief Exercise 3-5 On July 1, 2017, Major Co. pays $15,120 to Cruz Insurance Co. for a 3-year insurance contract. Both companies have fiscal years ending December 31. For Major Co., journalize and post the entry on July 1 and the annual 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 Prepaid Insurance Insurance Expense Click if you would like to Show Work for this question: Open Show Work Brief Exercise 3-4 At the end of its first year, the trial balance of Bronowski Company shows Equipment $30,000 and zero balances in Accumulated Depreciation-Equipment and Depreciation Expense. Depreciation for the year is estimated to be $4,000. Prepare the adjusting entry for depreciation at December 31. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Dec. 31 Post the adjustments to T-accounts. Depreciation Expense Accumulated Depreciation Equipment Indicate the balance sheet presentation of the equipment at December 31. Bronowski Company Balance Sheet (Partial)