On January 2 2016 Tucson Co. purchased a general liability insurance policy for $3600 for coverage for the calendar year. The entire $3600 was charged to Insurance Expense on January 2 2016. If the firm prepares monthly financial statements the proper adjusting entry on January 31 2016 will be: a.$\begin{array}{r}
\text { Insurance Expense } &3,300\
\text { Prepaid Insurance }&&3,300 \
\end{array}$

b.$\begin{array}{r}
\text { Prepaid Insurance }&3,300 \
\text { Insurance Expense }&&3,300
\end{array}$

c.$\begin{array}{l}
\text { Insurance Expense }&300 \
\text { Prepaid Insurance }&&300 \
\end{array}$

d.$\begin{array}{l}
\text { Prepaid Insurance }&300 \
\text { Insurance Expense }&&300
\end{array}$

Question

On January 2 2016 Tucson Co. purchased a general liability insurance policy for $3600 for coverage for the calendar year. The entire $3600 was charged to Insurance Expense on January 2 2016. If the firm prepares monthly financial statements the proper adjusting entry on January 31 2016 will be: a.$\begin{array}{r}
\text { Insurance Expense } &3,300\
\text { Prepaid Insurance }&&3,300 \
\end{array}$

b.$\begin{array}{r}
\text { Prepaid Insurance }&3,300 \
\text { Insurance Expense }&&3,300
\end{array}$

c.$\begin{array}{l}
\text { Insurance Expense }&300 \
\text { Prepaid Insurance }&&300 \
\end{array}$

d.$\begin{array}{l}
\text { Prepaid Insurance }&300 \
\text { Insurance Expense }&&300
\end{array}$

Quizplus · Accepted Answer

The Answer of On January 2 2016 Tucson Co. purchased a general liability insurance policy for $3600 for coverage for the calendar year. The entire $3600 was charged to Insurance Expense on January 2 2016. If the firm prepares monthly financial statements the proper adjusting entry on January 31 2016 will be: a.$\begin{array}{r}
\text { Insurance Expense } &3,300\
\text { Prepaid Insurance }&&3,300 \
\end{array}$

b.$\begin{array}{r}
\text { Prepaid Insurance }&3,300 \
\text { Insurance Expense }&&3,300
\end{array}$

c.$\begin{array}{l}
\text { Insurance Expense }&300 \
\text { Prepaid Insurance }&&300 \
\end{array}$

d.$\begin{array}{l}
\text { Prepaid Insurance }&300 \
\text { Insurance Expense }&&300
\end{array}$

On January 2 2016 Tucson Co Insurance Expense 3,300 Prepaid Insurance 3,300\begin{array}{r}\text { Insurance Expense } &3,300\\\text { Prepaid Insurance }&&3,300 \\\end{array} Insurance Expense Prepaid Insurance ​3,300​3,300​

On January 2 2016 Tucson Co $\begin{array}{r}\text { Insurance Expense } &3,300\\\text { Prepaid Insurance }&&3,300 \\\end{array}$