On October 1, 2016, Golde Company paid $18,600 for one year of insurance for the period, October 1, 2016 through September 30, 2017. Which of the following will be part of the adjusting entry on December 31, 2016?

Question

Quizplus · Accepted Answer

The insurance expense for the period from October 1, 2016, to December 31, 2016, is $4,650 (3 months of insurance at $1,550 per month), which should be recorded as an expense.

On October 1, 2016, Golde Company Paid $18,600 for One