On July 1, 2019, Crane Co. pays $21,400 to Novak Insurance Co. for a 4-year insurance contract. Both companies have fiscal years ending December 31. For Crane 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. Round answers to 0 decimal places, e.g. 5,275.)

Date

Account Titles and Explanation

Debit

Credit

July 1Dec. 31

July 1Dec. 31

Prepaid Insurance
7/112/3112/31 Bal.		7/112/3112/31 Bal.
7/112/3112/31 Bal.		7/112/3112/31 Bal.
Insurance Expense
7/112/3112/31 Bal.		7/112/3112/31 Bal.