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On August 1, GNB Enterprises signs a contract for insurance coverage for 12 months at $7,000 per month. The coverage begins on September 1.

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On August 1, GNB Enterprises signs a contract for insurance coverage for 12 months at $7,000 per month. The coverage begins on September 1. GNB pays $42,000 upfront on September 1 and will pay the remainder of the insurance at the end of the contract. What are the journal entries for GNB on September 1 and December 31? Sept 1 Dr. [Select] Cr. [Select] Dec 31 Dr. [Select] Cr. [Select] [Select] [Select] [Select] [Select]

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