Chapter 4, Problem 4.5P

1.

To determine

Concept Introduction:

Journal entries are part of basic accounting or primary system of accounting. In journal entries there are two aspects one is debit and another is credit. These two aspects are always equal. Journal entries are base on the ledger and trial balance.

To Prepare:

Journal entries for all the events/transactions.

2.

To determine

Concept Introduction:

Prepaid Expenses: All those expenses paid in advance by the company are known as prepaid expenses. Prepaid expenses are shown on the assets side of the balance sheet.

To Calculate:

Balance of prepaid insurance before December.