The following information relates to the Muscat Company at the end of 2019. The accounting period is the calendar year. An insurance policy of OMR 8,000 was paid on April 1, 2019, and was charged to Prepaid Insurance. The policy covers a 2- month period beginning April 1, 2019. If financial statements are to be prepared on December 31, the company should make the following adjusting entry:
The following information relates to the Muscat Company at the end of 2019. The accounting period is the calendar year. An insurance policy of OMR 8,000 was paid on April 1, 2019, and was charged to Prepaid Insurance. The policy covers a 2- month period beginning April 1, 2019. If financial statements are to be prepared on December 31, the company should make the following adjusting entry:
Chapter1: Financial Statements And Business Decisions
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Transcribed Image Text:- Introduction to Financial Accounting / FINAL EXAM ACCT101 FALL 2020-2021
The following information relates to the Muscat Company at the end of 2019. The accounting period is the calendar year.
An insurance policy of OMR 8,000 was paid on April 1, 2019, and was charged to Prepaid Insurance. The policy covers a 2-
month period beginning April 1, 2019. If financial statements are to be prepared on December 31, the company should make the
following adjusting entry:
Select one:
Oa. None of the answers are correct
O b. Debit Insurance Expense, OMR 6,000; Credit Prepaid Insurance, OMR 6,000.
Oc. Debit Insurance Expense, OMR 3,000; Credit Prepaid Insurance, OMR 3,000.
O d. Debit Insurance Expense, OMR 6,000; Credit Insurance Payable, OMR 6,000.
O e. Debit Insurance Expense, OMR 8,000; Credit Prepaid Insurance, OMR 8,000.
Nesto ge
FUIITSU
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