The bookkeeper advised you that $7,392 paid to InsuranceCo on 19th July 2019 for business insurance was for the 12 months to the end of June 2020.

You are required to create a manual journal entry to adjust the insurance expenses claimed for the month of July 2019 and the remainder($6,160+GST) to Prepayments.

Manual Journal:

1. Narration: Adjust insurance payment for end of July 2019
2. Date:31 July 2019
3. Untick Show journal on cash basis reports
4. Auto Reversing N/A
5. Amounts are No Tax
6. First line: Insurance
7. Second Line: Prepayments
8. For marking purposes, please make sure your manual journal narration is: Adjust insurance payment for end of July 2019
   
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Transcribed Image Text:

Manual Journals > New Manual Journal Draft Narration Date Auto Reversing Date (optional) Adjust insurance payment for end of July 2019 31 Jul 2019 V Default narration to journal line description O Show journal on cash basis reports ? Amounts are No Tax Description Account Tax Rate Debit AUD Credit AUD Subtotal 0.00 0.00 4 Add a new line TOTAL 0.00 0.00 :: ::: ::: ::: :: :: Manual Journals > New Manual Journal Draft Narration Date Auto Reversing Date (optional) Adjust insurance payment for end of July 2019 31 Jul 2019 V Default narration to journal line description O Show journal on cash basis reports ? Amounts are No Tax Description Account Tax Rate Debit AUD Credit AUD Subtotal 0.00 0.00 4 Add a new line TOTAL 0.00 0.00 :: ::: ::: ::: :: ::

Answer rating: 100% (QA)

A B D G H K 2 3 4 Total insurance amount paid for 12 months July 2019 ... View the full answer