On July 1, 2022, Sandhill Co. pays $15,376 to Blossom Company for a 2-year insurance contract. Both companies have fiscal years ending December 31. For Sandhill Co., journalize the entry on July 1 and the annual adjusting entry on December 31. (Record journal entries in the order presented in the problem. Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Date Your answer is partially correct. July 1 Dec. 31 + Account Titles and Explanation Prepaid Insurance Cash Insurance Expense Prepaid Insurance Debit 15376 2562 Credit 15376 2562

On July 1,2022, Sandhill Co. pays $15,376 to Blossom Company for a 2-year insurance contract. Both companies have fiscal years ending December 31. - Your answer is partially correct. For Sandhill Co., journalize the entry on July 1 and the annual adjusting entry on December 31. (Record journal entries in the order presented in the problem. Credit account titles are automatically indented when the amount is entered. Do not indent manually.)