What is the proper adjusting entry at June 30, the end of the fiscal year, based on a prepaid insurance account balance before adjustment, € 41,000, and unexpired amounts per analysis of policies of € 8,000? O Debit Insurance Expense, € 8,000; Credit Prepaid Insurance, € 8,000. Debit Insurance Expense, € 41,000; Credit Prepaid Insurance, € 41,000. Debit Prepaid Insurance, €33,000; Credit Insurance Expense, €33,000. Debit Insurance Expense, €33,000; Credit Prepaid Insurance, €33,000. 000

What is the proper adjusting entry at June 30, the end of the fiscal year, based on a prepaid insurance account balance before adjustment, € 41,000, and unexpired amounts per analysis of policies of € 8,000? O Debit Insurance Expense, € 8,000; Credit Prepaid Insurance, € 8,000. Debit Insurance Expense, € 41,000; Credit Prepaid Insurance, € 41,000. Debit Prepaid Insurance, €33,000; Credit Insurance Expense, €33,000. Debit Insurance Expense, €33,000; Credit Prepaid Insurance, €33,000. 000

Corporate Financial Accounting

15th Edition

ISBN:9781337398169

Author:Carl Warren, Jeff Jones

Publisher:Carl Warren, Jeff Jones

Chapter4: The Accounting Cycle

Section: Chapter Questions

Problem 4.3BPR: Income: 27,350 accounts, adjusting entries, financial statements, and closing entries; optional...

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Ledger accounts, adjusting entries, financial statements, and closing entries; optional end-of-period spreadsheet The unadjusted trill balance of Recessive Interior, at January 31, 20Y2, the end of the year, follows: The data needed to determine year-end adjustments are as follows: (a) Supplies on hand at January 31 are 2,850 (b) Insurance premium expired during the year are 3,150. (c) Depreciation of equipment during the year is 5,250 (d) Depreciation of trucks during the year is 4,000. (e) Wages accrued but not paid at January 31 are 900. Instructions 1. For each account listed in the unadjusted trial balance, enter the balance in the appropriate Balance column of a four-column account and place a check mark () in the Posting Reference column. 2. (Optional) Enter the unadjusted trial balance on an end-of-period spreadsheet and complete the spreadsheet. Add the accounts listed in part (3) as needed. 3. Journalize and post the adjusting entries, inserting balances in the accounts affected. Record the adjusting entries on Page 26 of the journal. The following additional accounts from Recessive Interiors chart if accounts should be used: Wages Payable, 22; Depreciation ExpenseEquipment, 54; Supplies Expense. 55; Depreciation ExpenseTrucks. 56; Insurance Expense, 57. 4. Prepare an adjusted trial balance. 5. Prepare an income statement, a statement of stockholders equity, and a balance sheet. During the year ended January 31, 20Y2, additional common stock of 7,500 was issued. 6. Journalize and post the dining entries. Record the closing entries on Page 27 of the journal. Indicate closed accounts by inserting a line in both Balance columns opposite the closing entry. 7. Prepare a post-closing trial balance.
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