The following information relates to the Muscat Company at the end of 2019. The accounting period is the calendar year. An insurance policy of OMR 8,000 was paid on April 1, 2019, and was charged to Prepaid Insurance. The policy covers a 2- month period beginning April 1, 2019. If financial statements are to be prepared on December 31, the company should make the following adjusting entry:

The following information relates to the Muscat Company at the end of 2019. The accounting period is the calendar year. An insurance policy of OMR 8,000 was paid on April 1, 2019, and was charged to Prepaid Insurance. The policy covers a 2- month period beginning April 1, 2019. If financial statements are to be prepared on December 31, the company should make the following adjusting entry:

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter9: Long-term Liabilities

Section: Chapter Questions

Problem 92PSA

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