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

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Date Account Titles and Explanation Debit 21600 July 1 Prepaid Insurance Cash 3600 Dec. 31 Insurance Expense Prepaid Insurance Prepaid Insurance 71 T 21600 12/31 T TL 21600 12/31 Bal. 3 TL 12/31 Insurance Expense T 3600 i 12/31 12/31 Credit 21600 3600 3600 18000 3600