The balance in the prepaid insurance account, before adjustment at the end of the year, is $14,460. Journalize the adjusting entry required under each of the following alternatives for determining the amount of the adjustment: If an amount box does not require an entry, leave it blank. a. The amount of insurance expired during the year is $10,990. Accounts Payable x Prepaid Expense x 10,860 x 10,860 x Feedback " Check My Work Set up a Prepaid Insurance T-account. Consider each situation by recalling that prepaid insurance expires and becomes an expense with the passage of time. The Insurance expense is the amount needed to arrive at the given ending balance. Complete your adjusting entry by making sure that the entry affects at least one income statement account and one balance sheet account.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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The balance in the prepaid insurance account, before adjustment at the end of the year, is $14,460.
Journalize the adjusting entry required under each of the following alternatives for determining the amount of the adjustment:
If an amount box does not require an entry, leave it blank.
a. The amount of insurance expired during the year is $10,990.
Accounts Payable x
Prepaid Expense X
10,860 x
10,860 X
Feedback
T Check My Work
Set up a Prepaid Insurance T-account. Consider each situation by recalling that prepaid insurance expires and becomes an expense with the
passage of time. The insurance expense is the amount needed to arrive at the given ending balance. Complete your adjusting entry by making
sure that the entry affects at least one income statement account and one balance sheet account.
b. The amount of unexpired insurance applicable to future periods is $3,470.
Transcribed Image Text:The balance in the prepaid insurance account, before adjustment at the end of the year, is $14,460. Journalize the adjusting entry required under each of the following alternatives for determining the amount of the adjustment: If an amount box does not require an entry, leave it blank. a. The amount of insurance expired during the year is $10,990. Accounts Payable x Prepaid Expense X 10,860 x 10,860 X Feedback T Check My Work Set up a Prepaid Insurance T-account. Consider each situation by recalling that prepaid insurance expires and becomes an expense with the passage of time. The insurance expense is the amount needed to arrive at the given ending balance. Complete your adjusting entry by making sure that the entry affects at least one income statement account and one balance sheet account. b. The amount of unexpired insurance applicable to future periods is $3,470.
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