An examination of the Prepaid Insurance account shows a debit balance of $3,960 at the end of the accounting period before adjustment. Prepare entries in journal form to record the insurance expense for the period under each of the following independent assumptions:
a. An examination of insurance policies shows that insurance costing $1,200 has expired during the period.

b. An examination of insurance policies shows unexpired insurance of $2,640 at the end of the period.

Question

An examination of the Prepaid Insurance account shows a debit balance of $3,960 at the end of the accounting period before adjustment. Prepare entries in journal form to record the insurance expense for the period under each of the following independent assumptions:
a. An examination of insurance policies shows that insurance costing $1,200 has expired during the period.
  
b. An examination of insurance policies shows unexpired insurance of $2,640 at the end of the period.

Quizplus · Accepted Answer

The Answer of An examination of the Prepaid Insurance account shows a debit balance of $3,960 at the end of the accounting period before adjustment. Prepare entries in journal form to record the insurance expense for the period under each of the following independent assumptions:
a. An examination of insurance policies shows that insurance costing $1,200 has expired during the period.
  
b. An examination of insurance policies shows unexpired insurance of $2,640 at the end of the period.

An Examination of the Prepaid Insurance Account Shows a Debit