Adjusting entries for prepaid insurance
The prepaid insurance account had a balance of $3,600 at the beginning of the year. The account was debited for $4,800 for premiums on policies purchased during the year. Journalize the adjusting entry required at the end of the year for each of the following situations: (a) the amount of unexpired insurance during the year is $2,950;(b) the amount of expired insurance during the year is $5,450.
2007-09-23 14:00:15 · 2 answers · asked by mmmhmmmm 2 in Business & Finance ➔ Insurance
(a) the amount of unexpired insurance at year end is $2,950
Dr Insurance expense 5,450
Cr Prepaid insurance 5,450
(b) the amount of expired insurance during the year is $5,450
Dr Insurance expense 5,450
Cr Prepaid insurance 5,450
2007-09-27 03:32:38 · answer #1 · answered by Sandy 7 · 0⤊ 0⤋
Insurance expense 5450
prepaid insurance 5450
2007-09-23 22:14:56 · answer #2 · answered by toledogolf 4 · 0⤊ 0⤋