Associated Services Company paid twelve months' insurance in advance totaling $9,000. At the end of the first month, the adjusting entry would include a:

Name: Associated Services Company paid twelve months' insurance in advance totaling $9,000. At the end of the first month, the adjusting entry would include a:
Brand: Quizplus
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Question

Quizplus · Accepted Answer

The insurance expense for one month is $750 ($9,000/12 months). The adjusting entry would debit Insurance Expense for $750 to recognize the expense for the month.

Associated Services Company Paid Twelve Months' Insurance in Advance Totaling