What is the proper adjusting entry at June 30, the end of the fiscal year, based on a prepaid insurance account balance before adjustment, $18650, and unexpired amounts per analysis of policies of $5990? Debit Prepaid Insurance, $12660; Credit Insurance Expense, $12660. Debit Insurance Expense, $12660; Credit Prepaid Insurance, $12660. Debit Insurance Expense, $5990; Credit Prepaid Insurance, $5990. Debit Insurance Expense, $18650; Credit Prepaid Insurance, $18650.

What is the proper adjusting entry at June 30, the end of the fiscal year, based on a prepaid insurance account balance before adjustment, $18650, and unexpired amounts per analysis of policies of $5990? Debit Prepaid Insurance, $12660; Credit Insurance Expense, $12660. Debit Insurance Expense, $12660; Credit Prepaid Insurance, $12660. Debit Insurance Expense, $5990; Credit Prepaid Insurance, $5990. Debit Insurance Expense, $18650; Credit Prepaid Insurance, $18650.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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What is the effect on the financial statements when a company fails to adjust the prepaid insurance account at year-end for insurance coverage that has been used?
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Subject: accounting
Which of the following is the proper adjusting entry, based on a prepaid insurance account balance before adjustment of $14,337 and unexpired insurance of $5,149, for the fiscal year ending on April 30? a.) debit Prepaid Insurance, $9,188; credit Insurance Expense, $9,188 b.) debit Prepaid Insurance, $14,337; credit Insurance Expense, $14,337 c.) debit Insurance Expense, $9,188; credit Prepaid Insurance, $9,188 d.) debit Insurance Expense, $14,337; credit Prepaid Insurance, $14,337
Which of the following is the proper adjusting entry, based on a prepaid insurance account balance before adjustment of $16,741 and unexpired insurance of $4,804, for the fiscal year ending on April 30? a.debit Prepaid Insurance, $11,937; credit Insurance Expense, $11,937 b.debit Insurance Expense, $16,741; credit Prepaid Insurance, $16,741 c.debit Prepaid Insurance, $16,741; credit Insurance Expense, $16,741 d.debit Insurance Expense, $11,937; credit Prepaid Insurance, $11,937
Adjustment for Prepaid Expense The prepaid insurance account had a beginning balance of $6,750 and was debited for $2,700 of premiums paid during the year. Journalize the adjusting entry required at the end of the year, assuming the amount of unexpired insurance related to future periods is $2,740. If an amount box does not require an entry, leave it blank.
The prepaid insurance account had a beginning balance of $3,755 and was debited for $6,755 of premiums paid during the year. Journalize the adjusting entry required at the end of the year, assuming the amount of unexpired insurance related to future periods is $2,640. Refer to the Chart of Accounts for exact wording of account titles.
Adjusting entries for prepaid insurance The balance in the prepaid insurance account, before adjustment at the end of the year, is $21,910. Journalize the adjusting entry required under each of the following alternatives for determining the amount of the adjustment: a. The amount of insurance expired during the year is $16,650. If an amount box does not require an entry, leave it blank. b. The amount of unexpired insurance applicable to future periods is $5,260. If an amount box does not require an entry, leave it blank. Σ .