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BE3-5 On July 1, 2008, Spahn Co. pays $18,000 to Randle Insurance Co. for a 3-year insurance contract. Both companies have fiscal years ending December 31.

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BE3-5 On July 1, 2008, Spahn Co. pays $18,000 to Randle Insurance Co. for a 3-year insurance contract. Both companies have fiscal years ending December 31.

For Spahn Co., journalize and post the entry on July 1 and the adjusting entry on December 31.

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