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Oakville Inc

Question 172

Multiple Choice

Oakville Inc.purchased a 12-month insurance policy on March 1, 2022 for $2,400.At March 31, 2022, the adjusting journal entry to record expiration of this asset will include:


A) a debit to Prepaid Insurance and a credit to Cash for $2,400.
B) a debit to Prepaid Insurance and a credit to Insurance Expense for $240.
C) a debit to Insurance Expense and a credit to Prepaid Insurance for $200.
D) a debit to Insurance Expense and a credit to Cash for $200.

Correct Answer:

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