Smokey Company purchases a one-year insurance policy on July 1 for $12,552. The adjusting entry on December 31 is Oa. debit Insurance Expense, $1,046 and credit Prepaid Insurance, $12,552 Ob. debit Insurance Expense, $6,276 and credit Prepaid Insurance, $6,276 Oc. debit Prepaid Insurance, $11,506 and credit Cash, $11,506 Od. debit Insurance Expense, S12,552 and credit Prepaid Insurance, $12,552

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Smokey Company purchases a one-year insurance policy on July 1 for $12,552. The adjusting entry on December 31 is
Oa. debit Insurance Expense, $1,046 and credit Prepaid Insurance, S12,552
Ob. debit Insurance Expense, S6,276 and credit Prepaid Insurance, $6,276
Oc. debit Prepaid Insurance, $11,506 and credit Cash, $11,506
Od. debit Insurance Expense, $12,552 and credit Prepaid Insurance, $12,552
Transcribed Image Text:Smokey Company purchases a one-year insurance policy on July 1 for $12,552. The adjusting entry on December 31 is Oa. debit Insurance Expense, $1,046 and credit Prepaid Insurance, S12,552 Ob. debit Insurance Expense, S6,276 and credit Prepaid Insurance, $6,276 Oc. debit Prepaid Insurance, $11,506 and credit Cash, $11,506 Od. debit Insurance Expense, $12,552 and credit Prepaid Insurance, $12,552
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