On July 1, 2015, Dobbs Co. pays $21,600 to Kalter Insurance Co. for a 3-year insurance contract. Both companies have fiscal years ending December 31. For Dobbs 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.)

PLEASE CORRECT THE RED

Date Account Titles and Explanation Debit 21600 July 1 Prepaid Insurance Cash L Dec. 31 Insurance Expense 3600 Prepaid Insurance Prepaid Insurance T 21600 12/31 T 21600 12/31 Bal. Insurance Expense 12/31 Bal. 3600 12/31 Bal. Credit 21600 3600 3600 21600 3600