On January 1, 2016, Bottle Rockets Corp. purchased a general liability insurance policy for $9,000 to provide
Question:
1. If the company recorded the policy as an asset when purchased, what is the monthly adjusting journal entry that should be recorded at January 31, 2016?
2. If the company expensed the cost of the policy on January 1, 2016, what is the monthly adjusting entry that should be recorded at January 31, 2016?
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1 Insurance Expense 750 Prepaid Insurance 750 2 Prepaid Ins...View the full answer
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Related Book For 
Intermediate Accounting Reporting and Analysis
ISBN: 978-1285453828
2nd edition
Authors: James M. Wahlen, Jefferson P. Jones, Donald Pagach
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