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on December 1 he purchased insurance for 2 years fro 2400 cash. I put 2400 and its wrong. What am I doing wrong?

on December 1 he purchased insurance for 2 years fro 2400 cash. I put 2400 and its wrong. What am I doing wrong?

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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on December 1 he purchased insurance for 2 years fro 2400 cash. I put 2400 and its wrong. What am I doing wrong?

Selected December-January Transactions Purchased Insurance Started Work for Telo Dec. 31 Year-End Finished Work for Telo Dec 1 Dec 7 Dec 13 (Dec 24 Jan 5 Jan 12 Purchased Supplies Received Cash in Advance Wages Paid Additional Information as of December 31 Telo Job Completion at Year-End ABX Job Completion at Year-End Telo ABX 60% Complete 25% Complete Wages Earned By Workers but not yet Paid at Supplies Remaining at Year-End Year-End
Transcribed Image Text:Selected December-January Transactions Purchased Insurance Started Work for Telo Dec. 31 Year-End Finished Work for Telo Dec 1 Dec 7 Dec 13 (Dec 24 Jan 5 Jan 12 Purchased Supplies Received Cash in Advance Wages Paid Additional Information as of December 31 Telo Job Completion at Year-End ABX Job Completion at Year-End Telo ABX 60% Complete 25% Complete Wages Earned By Workers but not yet Paid at Supplies Remaining at Year-End Year-End
1. Record the journal entries required for December, excluding the December 31 year-end adjusting entries. 2. Record the December 31 year-end adjusting entries for (a) prepaid insurance, (b) supplies, (c) accrued wages, (d) accrued revenue, and (e) unearned revenue. 3. Record the journal entries required for January. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Record the December 31 year-end adjusting entries for (a) prepaid insurance, (b) supplies, (c) accrued wages, (d) accrued revenue, and (e) unearned revenue. View transaction list Journal entry worksheet 1 4 5 > Record the insurance coverage that expired. Note: Enter debits before credits. Date General Journal Debit Credit Dec 31 Insurance expense 2,400 Prepaid insurance 2,400:
Transcribed Image Text:1. Record the journal entries required for December, excluding the December 31 year-end adjusting entries. 2. Record the December 31 year-end adjusting entries for (a) prepaid insurance, (b) supplies, (c) accrued wages, (d) accrued revenue, and (e) unearned revenue. 3. Record the journal entries required for January. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Record the December 31 year-end adjusting entries for (a) prepaid insurance, (b) supplies, (c) accrued wages, (d) accrued revenue, and (e) unearned revenue. View transaction list Journal entry worksheet 1 4 5 > Record the insurance coverage that expired. Note: Enter debits before credits. Date General Journal Debit Credit Dec 31 Insurance expense 2,400 Prepaid insurance 2,400:
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As per the accrual method of accounting, we need to accrue the expenses which incur in a particular accounting period.

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