An insurance policy, good for one year, was purchased on April 1, 2020 and has a value of $25,000. a) Write the journal entry to record the original purchase of the insurance policy on April 1. b) Write the adjusting journal entry required on April 31, 2020 to reflect the use of one month of the insurance service. What, concerning Insurance, would appear on the Balance Sheet? What would appear on the Income Statement? c) Write the adjusting journal entry required on May 31, 2020 to reflect the use of one more month of the insurance service. What, concerning Insurance, would appear on the Balance Sheet? What would appear on the Income Statement?

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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1. An insurance policy, good for one year, was purchased on April 1, 2020 and has a value
of $25,000.
a) Write the journal entry to record the original purchase of the insurance policy on
April 1.
b) Write the adjusting journal entry required on April 31, 2020 to reflect the use of one
month of the insurance service. What, concerning Insurance, would appear on the
Balance Sheet? What would appear on the Income Statement?
c) Write the adjusting journal entry required on May 31, 2020 to reflect the use of one
more month of the insurance service. What, concerning Insurance, would appear on
the Balance Sheet? What would appear on the Income Statement?

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