An insurance premium of $6,900 was paid on March 1, 2025, and was charged to Prepaid...

  

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An insurance premium of $6,900 was paid on March 1, 2025, and was charged to Prepaid Insurance. The premium covers a 24-month period beginning March 1, 2025. On June 1, 2025, cash of $45,720 was received from subscribers (customers) for a 36-month subscription period beginning on that date. The receipt was recorded by a debit to Cash and a credit to Unearned Subscription Revenue. The Supplies account showed a balance of $7,500 at the beginning of 2025. Supplies costing $17,500 were purchased during 2025 and debited to the asset account. Supplies of $1,600 were on hand at December 31, 2025. Using the information given above, prepare the necessary adjusting entries at December 31, 2025. An insurance premium of $6,900 was paid on March 1, 2025, and was charged to Prepaid Insurance. The premium covers a 24-month period beginning March 1, 2025. On June 1, 2025, cash of $45,720 was received from subscribers (customers) for a 36-month subscription period beginning on that date. The receipt was recorded by a debit to Cash and a credit to Unearned Subscription Revenue. The Supplies account showed a balance of $7,500 at the beginning of 2025. Supplies costing $17,500 were purchased during 2025 and debited to the asset account. Supplies of $1,600 were on hand at December 31, 2025. Using the information given above, prepare the necessary adjusting entries at December 31, 2025.

Answer rating: 100% (QA)

The information provided indicates three transactions that require adjusting entries as of December ... View the full answer