On October 1 of the current year, Morton Company paid $9,600 cash for a one-year insurance policy that took effect on that day. On the date of the payment, Morton recorded the following entry:
$\begin{array}{|l|l|r|r|}
\hline \text { Oct. 01 } & \text { Insurance Expense } & 9,600 & \
\hline & \text { Cash } & & 9,600 \
\hline
\end{array}$ Prepare the required adjusting entry at December 31 of the current year.

Question

On October 1 of the current year, Morton Company paid $9,600 cash for a one-year insurance policy that took effect on that day. On the date of the payment, Morton recorded the following entry:
 $\begin{array}{|l|l|r|r|}
\hline \text { Oct. 01 } & \text { Insurance Expense } & 9,600 & \
\hline & \text { Cash } & & 9,600 \
\hline
\end{array}$ Prepare the required adjusting entry at December 31 of the current year.

Quizplus · Accepted Answer

The Answer of On October 1 of the current year, Morton Company paid $9,600 cash for a one-year insurance policy that took effect on that day. On the date of the payment, Morton recorded the following entry:
 $\begin{array}{|l|l|r|r|}
\hline \text { Oct. 01 } & \text { Insurance Expense } & 9,600 & \
\hline & \text { Cash } & & 9,600 \
\hline
\end{array}$ Prepare the required adjusting entry at December 31 of the current year.

On October 1 of the Current Year, Morton Company Paid Oct. 01 Insurance Expense 9,600 Cash 9,600\begin{array}{|l|l|r|r|}\hline \text { Oct. 01 } & \text { Insurance Expense } & 9,600 & \\\hline & \text { Cash } & & 9,600 \\\hline\end{array} Oct. 01 ​ Insurance Expense Cash ​9,600​9,600​​

On October 1 of the Current Year, Morton Company Paid $\begin{array}{|l|l|r|r|}\hline \text { Oct. 01 } & \text { Insurance Expense } & 9,600 & \\\hline & \text { Cash } & & 9,600 \\\hline\end{array}$