Adjusting entries for prepaid insurance The prepaid insurance account had a balance of $3,000 at the beginning of the year. The account was debited for $32,500 for premiums on policies purchased during the year. journalize the adjusting entry required under each of the following alternatives for determining the amount of the adjustment: (A) the amount of unexpired insurance applicable to future periods is $4,800; (B) the amount of insurance expired during the year is $30,700.
Corporate Financial Accounting
Corporate Financial Accounting
Solutions
Adjusting entries for prepaid insurance
The prepaid insurance account had a balance of $3,000 at the beginning of the year. The account was debited for $32,500 for premiums on policies purchased during the year. journalize the adjusting entry required under each of the following alternatives for determining the amount of the adjustment: (A) the amount of unexpired insurance applicable to future periods is $4,800; (B) the amount of insurance expired during the year is $30,700.
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