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At 31 October 2019 before any year-end adjustments, a companies insurance expense had a normal balance of 3800 and its prepaid insurance account had a normal balance of 1450. It is revealed that 3000 of the 5250 total related to benefits that expired in the year 2019. The required adjusting entry is: a) debit insurance expense for 3000 b) credit prepaid insurance for 800 c) credit prepaid insurance for 1450 d) debit prepaid insurance for 800

At 31 October 2019 before any year-end adjustments, a companies insurance expense had a normal balance of 3800 and its prepaid insurance account had a normal balance of 1450. It is revealed that 3000 of the 5250 total related to benefits that expired in the year 2019. The required adjusting entry is: a) debit insurance expense for 3000 b) credit prepaid insurance for 800 c) credit prepaid insurance for 1450 d) debit prepaid insurance for 800

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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At 31 October 2019 before any year-end adjustments, a companies insurance expense had a normal balance of 3800 and its prepaid insurance account had a normal balance of 1450. It is revealed that 3000 of the 5250 total related to benefits that expired in the year 2019. The required adjusting entry is:

a) debit insurance expense for 3000

b) credit prepaid insurance for 800

c) credit prepaid insurance for 1450

d) debit prepaid insurance for 800

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