The balance in the prepaid insurance account before adjustment on December 31, 2007 is $5,000. The amount of expired insurance is $2,000. What account should be credited in the journal (2) and for what amount to record the adjusting entry for insurance based on this information? JOURNAL 25 Page debit date description p.ref. CREDIT Adjusting Entries (1) 12/31 (2) Insurance Expense $2,000 Insurance Expense $3,000 Prepaid Insurance $3,000 Prepaid Insurance $2,000

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Question
The balance in the prepaid insurance account before adjustment on December 31, 2007 is $5,000. The
amount of expired insurance is $2,000. What account should be credited in the journal (2) and for what
amount to record the adjusting entry for insurance based on this information?
JOURNAL
25
Page
debit
date
description
p.ref.
CREDIT
Adjusting Entries
(1)
12/31
(2)
Insurance Expense $2,000
Insurance Expense $3,000
Prepaid Insurance $3,000
Prepaid Insurance $2,000
Transcribed Image Text:The balance in the prepaid insurance account before adjustment on December 31, 2007 is $5,000. The amount of expired insurance is $2,000. What account should be credited in the journal (2) and for what amount to record the adjusting entry for insurance based on this information? JOURNAL 25 Page debit date description p.ref. CREDIT Adjusting Entries (1) 12/31 (2) Insurance Expense $2,000 Insurance Expense $3,000 Prepaid Insurance $3,000 Prepaid Insurance $2,000
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps

Blurred answer
Similar questions
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education