On 1 May 2011 A Ltd pays $9600 for a one-year fire insurance policy that expires on 30 April 2012.What is the journal entry made by A Ltd on 30 June 2011?
A. DR Insurance expense $\$ 1600$ $\quad $ CR Prepaid insurance $\$ 1600$

B. DR Prepaid insurance $\$ 9600$ $\quad $ CR Cash $\$ 9600$

C. DR Prepaid insurance $\$ 1600$ $\quad $ CR Insurance expense $\$ 1600$

D. DR Insurance expense $\$ 9600$ $\quad $ CR Prepaid insurance $\$ 9600$

Question

On 1 May 2011 A Ltd pays $9600 for a one-year fire insurance policy that expires on 30 April 2012.What is the journal entry made by A Ltd on 30 June 2011?
A. DR Insurance expense $\$ 1600$  $\quad $ CR Prepaid insurance $\$ 1600$

B. DR Prepaid insurance $\$ 9600$  $\quad $ CR Cash $\$ 9600$

C. DR Prepaid insurance $\$ 1600$  $\quad $ CR Insurance expense $\$ 1600$

D. DR Insurance expense $\$ 9600$  $\quad $ CR Prepaid insurance $\$ 9600$

Quizplus · Accepted Answer

The Answer of On 1 May 2011 A Ltd pays $9600 for a one-year fire insurance policy that expires on 30 April 2012.What is the journal entry made by A Ltd on 30 June 2011?
A. DR Insurance expense $\$ 1600$  $\quad $ CR Prepaid insurance $\$ 1600$

B. DR Prepaid insurance $\$ 9600$  $\quad $ CR Cash $\$ 9600$

C. DR Prepaid insurance $\$ 1600$  $\quad $ CR Insurance expense $\$ 1600$

D. DR Insurance expense $\$ 9600$  $\quad $ CR Prepaid insurance $\$ 9600$

On 1 May 2011 a Ltd Pays $9600 for a One-Year