On June 1, 2010, Sting Insurance Co. received $7,380 cash from Bere Co. for a one-year insurance policy. Sting Insurance Co. has an October 31 fiscal year end and adjusts accounts annually. Complete the following for Sting Insurance Co.

1) Prepare the June 1, 2010, journal entry.

June 1:
I put Csah debit 7380
Insurance revenue credit "i think!!"



2) Calculate the amount of revenue earned during 2010 and the amount unearned at October 31, 2010.

Amount of revenue earned during 2010: for revenue earned is 3075(7380*5/12=3075

Amount of revenue unearned at October 31, 2010: but I don't know how to get unearned revenue!




3)Prepare the adjusting entry required on October 31, 2010.

Dec. 31

for this one I'm confuse, I debit Insurance revenue amount 3075
and credit cash amount3075

1. Debit cash for the amount received.
Credit Unearned Insurance Revenue or Unearned Service Revenue (whichever account your company uses) for the amount received.

2. Debit your Unearned Revenue amount for the amount you calculated. Cost * 5/12
Credit Insurance Revnue for the amount.

3. Simply take your Unearned Revenue amount from Jun 1 and subtract the revenue earned. Amount from step 1 minus the amount from step 2.