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Nair Company Paid $144,000 for a Two-Year Insurance Policy on October

Question 24

Multiple Choice

Nair Company paid $144,000 for a two-year insurance policy on October 1 and recorded the 144,000 as a debit to Prepaid Insurance and a credit to Cash.
What adjusting entry should Nair make on December 31, the end of the accounting period (no previous adjustment has been made) ?


A) Nair Company paid $144,000 for a two-year insurance policy on October 1 and recorded the 144,000 as a debit to Prepaid Insurance and a credit to Cash. What adjusting entry should Nair make on December 31, the end of the accounting period (no previous adjustment has been made) ? A) B) C) D)
B) Nair Company paid $144,000 for a two-year insurance policy on October 1 and recorded the 144,000 as a debit to Prepaid Insurance and a credit to Cash. What adjusting entry should Nair make on December 31, the end of the accounting period (no previous adjustment has been made) ? A) B) C) D)
C) Nair Company paid $144,000 for a two-year insurance policy on October 1 and recorded the 144,000 as a debit to Prepaid Insurance and a credit to Cash. What adjusting entry should Nair make on December 31, the end of the accounting period (no previous adjustment has been made) ? A) B) C) D)
D) Nair Company paid $144,000 for a two-year insurance policy on October 1 and recorded the 144,000 as a debit to Prepaid Insurance and a credit to Cash. What adjusting entry should Nair make on December 31, the end of the accounting period (no previous adjustment has been made) ? A) B) C) D)

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