On July 1, 2012, Israel Co. pays $17,226 to Idonije Insurance Co. for a 3-year insurance contract. Both companies have fiscal years ending, December 31. For Israel Co., journalize and post the entry on July 1 and the adjusting entry on December 31.

Date	Account/Description	Debit	Credit
July 1	Prepaid Insurance Cash Insurance Expense Insurance Revenue Accounts Receivable Accounts Payable Accrued Insurance Unearned Insurance Revenue
	Cash Prepaid Insurance Insurance Expense Insurance Revenue Accounts Receivable Accounts Payable Accrued Insurance Unearned Insurance Revenue
Dec. 31	Insurance Expense Prepaid Insurance Cash Insurance Revenue Accounts Receivable Accounts Payable Accrued Insurance Unearned Insurance Revenue
	Prepaid Insurance Cash Insurance Expense Insurance Revenue Accounts Receivable Accounts Payable Accrued Insurance Unearned Insurance Revenue

Using T accounts, enter the balances in the accounts below, post the adjusting entry as necessary, and indicate the adjusted balance in each account. (If there is no entry, enter NA for the date and 0 for the amount.)

Prepaid Insurance
July 1 Dec. 31 NA		Dec. 31 July 1 NA
12/31 Bal.		12/31 Bal.

Insurance Expense
Dec. 31 July 1 NA		NA Dec. 31 July 1

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