Prepaid Insurance and theMonthly Prepaid Insurance Adjusting EntryOn September 1, 2021, Amy's Floral Shop, Inc. paid cash for the following two insurance policies.Insurance Policy #1Type of insurance coverageStarting date of the insurance coveragePeriod of time coverage is forAuto and TruckSeptember 1, 20213 monthsTotal cost of coverage paid in advance$525Insurance Policy #2Type of insurance coverageBusiness LiabilitySeptember 1, 2021Starting date of the insurance coveragePeriod of time coverage is for4 months$1,400Total cost of coverage paid in advanceThe company has the accounting policy that all prepaid assets are initially recorded in assetaccounts.The following is a partial list of the accounts in Amy's General Ledger. These are the onlyaccounts you need for this problem.D CashD Prepaid Insurance (asset account)Insurance ExpenseOroblom 7.1 to Requirement 1 -- September 1 advance payment of the two insurance policies ngDateAccount NameDebituranceCrediturent banoeRequirement 2 -- Auto and Truck Prepaid Insurance timelineIn the boxes above the timeline, indicate the amount of remaining Prepaid Insurance relatedto the Auto and Truck insurance policy for each date on the timeline.In the boxes below the timeline, indicate the amount of Prepaid Insurance that expires(is used-up) during each of the three months.+Sept. 1+Sept. 30+Oct. 31Nov. 30RequiremenSeptemberOctoberNovemberPateDabitMonth 1Month 2Month 3Requirement 3 -- Business Liability Prepaid Insurance timelineIn the boxes above the timeline, indicate the amount of remaining Prepaid Insurance relatedto the Business Liability insurance policy for each date on the timeline.In the boxes below the timeline, indicate the amount of Prepaid Insurance that expires(is used-up) during each of the four months.Amount of inance Expense he Octo+Sept. 1+Oct. 31Nov. 30+Dec. 31Sept. 30NovemberDecemberSeptemberOctober

Date Particulars Debit($) Credit($) Sep-01 Prepaid Insurance $1,925 To Cash…

Answered: following two insurance policies. Auto…

following two insurance policies. Auto and Truck September 1, 2021 B months 525 Business Liability September 1, 2021 months initially recorded in asset er. These are the only (qunoɔs

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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kk. Subject :- Accounting
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