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On July 1, 2020, Blue Spruce Corp. pays $23,700 to Kalter Insurance Co. for a 3-year insurance contract. Both companies have fiscal years ending December 31. For Blue Spruce Corp., journalize and post the entry on July 1 and the annual 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.)

Date	Account Titles	Debit	Credit
choose a transaction date July 1Dec. 31	enter an account title	enter a debit amount	enter a credit amount
	enter an account title	enter a debit amount	enter a credit amount
choose a transaction date July 1Dec. 31	enter an account title	enter a debit amount	enter a credit amount
	enter an account title	enter a debit amount	enter a credit amount

Prepaid Insurance
choose a transaction date 7/112/3112/31 Bal.	enter a debit amount	choose a transaction date 7/112/3112/31 Bal.	enter a credit amount
choose the end date of the accounting period 7/112/3112/31 Bal.	enter a debit balance	choose the end date of the accounting period 7/112/3112/31 Bal.	enter a credit balance
Insurance Expense
choose a transaction date 7/112/3112/31 Bal.	enter a debit amount	choose a transaction date 7/112/3112/31 Bal.	enter a credit amount

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