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On March 1, 2022 a company paid $30,000 in advance for a one-year insurance policy. What adjusting entry should be made on December 31, 2022? (Assume that no financial statements were prepared during the year and no adjusting entries have been recorded.) Multiple Choice Account Prepaid Insurance Insurance Expense Account Prepaid Insurance Insurance Expense Account Insurance Expense Prepaid Insurance Account Insurance Expense Cash Debit 25,000 Debit 22,500 Debit 25,000 Debit 22,500 Credit 25,000 Credit 22,500 Credit 25,000 Credit 22,500

On March 1, 2022 a company paid $30,000 in advance for a one-year insurance policy. What adjusting entry should be made on December 31, 2022? (Assume that no financial statements were prepared during the year and no adjusting entries have been recorded.) Multiple Choice Account Prepaid Insurance Insurance Expense Account Prepaid Insurance Insurance Expense Account Insurance Expense Prepaid Insurance Account Insurance Expense Cash Debit 25,000 Debit 22,500 Debit 25,000 Debit 22,500 Credit 25,000 Credit 22,500 Credit 25,000 Credit 22,500

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 March 1, 2022 a company paid $30,000 in advance for a one-year insurance policy. What adjusting entry should be made on December 31, 2022? (Assume that no financial statements were prepared during the year and no adjusting entries have been recorded.) Multiple Choice Account Prepaid Insurance Insurance Expense Account Prepaid Insurance Insurance Expense Account Insurance Expense Prepaid Insurance Account Insurance Expense Cash Debit 25,000 Debit 22,500 Debit 25,000 Debit 22,500 Credit 25,000 Credit 22,500 Credit 25,000 Credit 22,500
Transcribed Image Text:On March 1, 2022 a company paid $30,000 in advance for a one-year insurance policy. What adjusting entry should be made on December 31, 2022? (Assume that no financial statements were prepared during the year and no adjusting entries have been recorded.) Multiple Choice Account Prepaid Insurance Insurance Expense Account Prepaid Insurance Insurance Expense Account Insurance Expense Prepaid Insurance Account Insurance Expense Cash Debit 25,000 Debit 22,500 Debit 25,000 Debit 22,500 Credit 25,000 Credit 22,500 Credit 25,000 Credit 22,500
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