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Smith Company Paid $26,400 for a Four-Year Insurance Policy on September

Question 33

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Smith Company paid $26,400 for a four-year insurance policy on September 1 and recorded the $26,400 as an increase to Prepaid Insurance and a decrease to Cash. What adjustment should Smith make on December 31, the end of the accounting period (no previous adjustment has been made)?
Smith Company paid $26,400 for a four-year insurance policy on September 1 and recorded the $26,400 as an increase to Prepaid Insurance and a decrease to Cash. What adjustment should Smith make on December 31, the end of the accounting period (no previous adjustment has been made)?

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