On March 1, 2020, Visa paid $264 million for a one-year insurance policy starting on March 1, 2020 and running for 12 consecutive months. On March 1, Visa made the following journal entry: 

 Dr. Prepaid Insurance 264 million  

 Cr. Cash  264 million

         

Visa did not make any journal entries related to the prepaid insurance after the initial journal entry. What adjusting journal entry should Visa make on September 30, 2020 related to prepaid insurance?

Answer rating: 100% (QA)

To determine the adjusting journal entry for prepaid insurance on September 30 2020 we need to ac... View the full answer