On November 1 of the current year, Salinger Company paid $9,600 cash for a one-year insurance policy that took effect on that day. On the date of the payment, Salinger recorded the following entry:
$\begin{array}{lll}
\text { Nov. } 01 & \text { Insurance Expense } &9,600\
&\text { Cash }&&9,600
\end{array}$
Assuming Salinger only prepares adjustments at year-end, prepare the required adjusting entry at December 31 of the current year.

Question

On November 1 of the current year, Salinger Company paid $9,600 cash for a one-year insurance policy that took effect on that day. On the date of the payment, Salinger recorded the following entry:
$\begin{array}{lll}
\text { Nov. } 01 & \text { Insurance Expense } &9,600\
&\text { Cash }&&9,600
\end{array}$ 
Assuming Salinger only prepares adjustments at year-end, prepare the required adjusting entry at December 31 of the current year.

Quizplus · Accepted Answer

The Answer of On November 1 of the current year, Salinger Company paid $9,600 cash for a one-year insurance policy that took effect on that day. On the date of the payment, Salinger recorded the following entry:
$\begin{array}{lll}
\text { Nov. } 01 & \text { Insurance Expense } &9,600\
&\text { Cash }&&9,600
\end{array}$ 
Assuming Salinger only prepares adjustments at year-end, prepare the required adjusting entry at December 31 of the current year.

On November 1 of the Current Year, Salinger Company Paid Nov. 01 Insurance Expense 9,600 Cash 9,600\begin{array}{lll}\text { Nov. } 01 & \text { Insurance Expense } &9,600\\&\text { Cash }&&9,600\end{array} Nov. 01​ Insurance Expense Cash ​9,600​9,600​

On November 1 of the Current Year, Salinger Company Paid $\begin{array}{lll}\text { Nov. } 01 & \text { Insurance Expense } &9,600\\&\text { Cash }&&9,600\end{array}$