Hershey company purchased one year insurance policy on August 1st and recorded the $4,200 premium to prepaid insurance. At its December 31 year end, Hershey company would record which of the following adjusting entries: A. Debit insurance expense and credit prepaid insurance for $2,450 B. Debit prepaid insurance and credit insurance expense for $1,750 C. Debit insurance expense and credit accounts payable for $4,200 D. Debit insurance expense and credit prepaid insurance for $1,750

Hershey company purchased one year insurance policy on August 1st and recorded the $4,200 premium to prepaid insurance. At its December 31 year end, Hershey company would record which of the following adjusting entries: A. Debit insurance expense and credit prepaid insurance for $2,450 B. Debit prepaid insurance and credit insurance expense for $1,750 C. Debit insurance expense and credit accounts payable for $4,200 D. Debit insurance expense and credit prepaid insurance for $1,750

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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