On January 18, 2019, MetroPlex paid $12,000 for a two-year insurance premium that covers February 1, 2019 through January 31, 2021. MetroPlex's year-end is March 31.
Required
a. What entry is made on January 18, 2019?
b. What adjusting entry should be made on March 31, 2019 before the financial statements are prepared for the year ending March 31, 2019?

Question

On January 18, 2019, MetroPlex paid $12,000 for a two-year insurance premium that covers February 1, 2019 through January 31, 2021. MetroPlex's year-end is March 31. 
Required
a. What entry is made on January 18, 2019?
b. What adjusting entry should be made on March 31, 2019 before the financial statements are prepared for the year ending March 31, 2019?

Quizplus · Accepted Answer

The Answer of On January 18, 2019, MetroPlex paid $12,000 for a two-year insurance premium that covers February 1, 2019 through January 31, 2021. MetroPlex's year-end is March 31. 
Required
a. What entry is made on January 18, 2019?
b. What adjusting entry should be made on March 31, 2019 before the financial statements are prepared for the year ending March 31, 2019?

On January 18, 2019, MetroPlex Paid $12,000 for a Two-Year