On July 1, 2017, Major Co. pays dollar 12,000 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 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.)