On November 1, 2021 Blues Company paid $18,000 for two years of insurance, inadvance. Which of the following will be part of the adjusting entry on December 31,2021?O Debit Insurance Expense for $3,000O Debit Insurance Expense for $1,500O Debit Prepaid Insurance for $3,000O Debit Prepaid Insurance for $1,500O None of the above.

On November 1, 2021 Blues Company paid $18,000 for two years of insura advance. Which of the following will be part of the adjusting entry on Dece 2021? O Debit Insurance Expense for $3,000 O Debit Insurance Expense for $1,500 Debit Prenaid InSurance for $3.000

On November 1, 2021 Blues Company paid $18,000 for two years of insura advance. Which of the following will be part of the adjusting entry on Dece 2021? O Debit Insurance Expense for $3,000 O Debit Insurance Expense for $1,500 Debit Prenaid InSurance for $3.000

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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Question

On November 1, 2021 Blues Company paid $18,000 for two years of insurance, in
advance. Which of the following will be part of the adjusting entry on December 31,
2021?
O Debit Insurance Expense for $3,000
O Debit Insurance Expense for $1,500
O Debit Prepaid Insurance for $3,000
O Debit Prepaid Insurance for $1,500
O None of the above.

Expert Solution

Introduction

Adjusting entries are modifications to previously recorded journal entries. They specifically ensure that the values you have recorded correspond to the relevant accounting periods. Journal entries show how money flows through your business—how it enters, exits, and transfers between accounts.

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