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On April 1, 2024, Chardonnay pays an insurance company $12,480 for a two- year fire insurance policy. The entire $12,480 is debited to Prepaid

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On April 1, 2024, Chardonnay pays an insurance company $12,480 for a two- year fire insurance policy. The entire $12,480 is debited to Prepaid Insurance at the time of the purchase. Record the adjusting entry for insurance at its year-end of December 31. Note: Enter debits before credits. Date General Journal December 31 Insurance Expense Prepaid Insurance Debit Credit

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