A company purchases a one-year insurance policy on June 1 for $840, correctly recording it as prepaid
Fantastic news! We've Found the answer you've been seeking!
Question:
A company purchases a one-year insurance policy on June 1 for $840, correctly recording it as prepaid insurance. No adjustments have been make during the year. The adjusting entry on December 31 is
debit Insurance Expense, $280 and credit Prepaid Insurance, $280 |
debit Prepaid Insurance, $720, and credit Cash, $720 |
debit Insurance Expense, $350 and credit Prepaid Insurance, $350 |
debit Insurance Expense, $490, and credit Prepaid Insurance, $ 490 |
Related Book For
Financial And Managerial Accounting The Basis For Business Decisions
ISBN: 9781260247930
19th Edition
Authors: Jan Williams, Susan Haka, Mark Bettner, Joseph Carcello
Posted Date: