Spector LLP has purchased annual insurance policy for the first time on February 1, 2023 for $302,500. Assuming adjusting entries have not been made on a monthly basis (i.e. no entry was booked since February 1, 2023), what entry was required for December 31, 2023? Debit Prepaid Insurance for $302,500, and Credit Cash for $302,500 Debit Cash for $25,208, and Credit Prepaid insurance for $25,208 Debit Insurance Expense for $277,292, and Credit Prepaid Insurance for $277,292 Debit Insurance Expense for $302,500, and Credit Prepaid Insurance for $302,500
Spector LLP has purchased annual insurance policy for the first time on February 1, 2023 for $302,500. Assuming adjusting entries have not been made on a monthly basis (i.e. no entry was booked since February 1, 2023), what entry was required for December 31, 2023? Debit Prepaid Insurance for $302,500, and Credit Cash for $302,500 Debit Cash for $25,208, and Credit Prepaid insurance for $25,208 Debit Insurance Expense for $277,292, and Credit Prepaid Insurance for $277,292 Debit Insurance Expense for $302,500, and Credit Prepaid Insurance for $302,500
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question 1 ✓ Saved Spector LLP has purchased annual insurance policy for the first time on February 1, 2023 for $302,500. Assuming adjusting entries have not been made on a monthly basis (i.e. no entry was booked since February 1, 2023), what entry was required for December 31, 2023? Debit Prepaid Insurance for $302,500, and Credit Cash for $302,500 Debit Cash for $25,208, and Credit Prepaid insurance for $25,208 Debit Insurance Expense for $277,292, and Credit Prepaid Insurance for $277,292 Debit Insurance Expense for $302,500, and Credit Prepaid Insurance for $302,500
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