On January 1,2015,Peach Company purchased a five-year insurance policy for $5,000.If the cost was debited to Prepaid Insurance,the adjusting entry at the end of 2015 is:
A) Debit Prepaid Insurance,$1,800; credit Cash,$1,800.
B) Debit Prepaid Insurance,$1,000; credit Insurance Expense,$1,000.
C) Debit Prepaid Insurance,$360; credit Insurance Expense,$360.
D) Debit Insurance Expense,$360; credit Prepaid Insurance,$360.
E) Debit Insurance Expense,$1,000,credit Prepaid Insurance $1,000.
Correct Answer:
Verified
Q82: Adjusting entries
A) Affect only income statement accounts
B)
Q84: The 12-month period that ends when a
Q85: If throughout an accounting period the fees
Q85: The approach to preparing financial statements based
Q87: Adjusting entries are journal entries made at
Q91: The approach to preparing financial statements based
Q96: The accounting principle that requires revenue to
Q97: Prepaid expenses, depreciation, accrued expenses, unearned revenues,
Q99: An account the balance of which is
Q100: The broad principle that requires expenses to
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents