No More Clutter, Inc. provides home organization services. The company pays the annual 12-month renewal of its insurance policy on January 1, 2022. The total premium is $1,200. On January 31, the adjusting entry required would include a debit to
Cash for $100.
Insurance Expense for $100.
Prepaid Insurance for $100.
nothing, because the policy has already been paid in full.

Answer rating: 100% (QA)

Date Account Prepaid Insurance Cash Date Record payment of annual ... View the full answer