$90$ SOLID FOOTING

Chapter $7-$ Adjusting Entries

Problem $7-5($continued$)$

Requirement $4$

Prepare a $"$T$"$ account analysis to determine the required September $30$ adjustment to the Prepaid Insurance account. Note that your $"$T$"$ account analysis is for the Prepaid Insurance account, which contains the total amount of Prepaid Insurance for both insurance policies.

Requirement $5$

Prepare the September $30$ General Journal adjusting entry for Prepaid Insurance.

Requirement $6$

Assuming that all monthly General Journal adjusting entries were correctly made and that no additional insurance has been purchased:

$$ What would be the amount of Prepaid Insurance shown on Amy's Floral Shop, Inc.$\text{'}$s Balance Sheet as of October $31,2023?$

D What would be the amount of Insurance Expense on the Income Statement for the period October $1$ to October $31,2023?$