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Journal entries for purchase of two-year policy from a different insurance.
1.(2/28/2009) The coverage for the previous insurance policy expired, and Goochland decided to purchase a two-year policy from a different insurance, Glad Hands Insurance. Goochland paid a total of $30,000 for two years of coverage.
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2.(2/28/2009) Goochland's previous rental prepayment also expired today, and they renewed the lease for two years by prepaying a total of $124,800 in cash.
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