A property is taken over on January 1st and the client asks that the accrual basis method is used. On January 1st. a check is issued for the insurance premium of $12,000 which covers the period of January 1st to December 31st. 

What would the entry be to record issuing the check for $12,000?

Then, would a monthly journal entry be required based on how you set up the property insurance journal entry and what would that look like?

Answer rating: 100% (QA)

The entry to record issuing the check for 12000 on January 1st would be as follows Date January 1st ... View the full answer