How do you adjust this account? This was my answer, but it said I incorrect. Journal entry worksheet12456.The Prepaid Insurance account had a $6,000 debit balance at December 31before adjusting for the costs of any expired coverage. An analysis of thecompany's insurance policies showed that $1,280 of unexpired insurancecoverage remains.Note: Enter debits before credits.TransactionGeneral JournalDebitCreditb.Insurance expense1,280Prepaid insurance1,280Record entryClear entryView general journal

Prepaid insurance can be defined as that asset account which is the security amount for future…

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Business

Accounting

How do you adjust this accoun

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter4: The Adjustment Process

Section: Chapter Questions

Problem 11Q: If the Prepaid Insurance account had a balance of $12,000, representing one years policy premium,...

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Bookkeeping

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How do you adjust this account? This was my answer, but it said I incorrect.

Journal entry worksheet
1
2
4
5
6.
The Prepaid Insurance account had a $6,000 debit balance at December 31
before adjusting for the costs of any expired coverage. An analysis of the
company's insurance policies showed that $1,280 of unexpired insurance
coverage remains.
Note: Enter debits before credits.
Transaction
General Journal
Debit
Credit
b.
Insurance expense
1,280
Prepaid insurance
1,280
Record entry
Clear entry
View general journal

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