On July 1, 2022, Sandhill Co. pays $22,000 to Cullumber Company for a 2-year insurance contract. Both companies have fiscal years ending December 31. Required:
Journalize the entry on July 1 and the adjusting entry on December 31 for Cullumber Company.

Dr Prepaid insurance 22,000

Cr cash 22,000

Dr Insurance expense 5,500

Cr Prepaid insurance 5,500

Explanation:

Preparation of Journal entries

Based on the information given we were told that Sandhill Company pays the amount of $22,000 to another company which is Cullumber Company for a 2-year insurance contract in which Both the companies have fiscal years that is ending December 31 which means that the Journal entry will be recorded as:

Dr Prepaid insurance 22,000

Cr cash 22,000

Dr Insurance expense 5,500

Cr Prepaid insurance 5,500

[(22,000*6/12)/2]

what

explanation:

answer: b. false

the staff is a set of five horizontal lines and four spaces which represent a different musical pitch. the lines and the spaces are numbered from bottom to top, the bottom line is the first line and the fifth line is the line on the top. the notes on the top of the staff (fifth line) have a higher pitch than a note at the bottom of the staff.