Question

+ Update Apple ID Settings Some countries will not be View x CengageNoW2 Online teacl x Q Chapter 3 Practice Flashcards x angenow.com/m akeAssignment/takeAssignment Main.do?invoker=&takeAssignmentSessionLocator Sinprogressefalse ocumen G oogle Image Res Which of the following is the proper adjusting entry, based on a prepaid insurance account balance before adjustment of $10,000 and unexpired insurance of 53.000, the fiscal year ending on April 302 Ca debit Insurance Expense, 53,000; credit Prepaid Insurance, $3,000 C. debit Insurance Expense, 114,000 credit Prepaid Insurance, $14,000 c. debit Insurance Expense, 511,000 credit Prepaid Insurance, $11,000 debit Prepaid Insurance $11,000; credit Insurance Expense, 111,000 93.73

Answer 1

UNEXPIRED INSURANCE MEANS INSURANCE AMOUNT PAID IN ADVANCE

IN THIS QUESTION UNEXPECTED INSURANCE AMOUNT IS $3000

WHEN A COMPANY PAID FOR INSURANCE ,THE JOURNAL ENTRY IS;

                        DEBIT INSURANCE EXPENSES

                                        CREDIT PREPAID INSURANCE

SO DEDUCT $3000 FROM $14000 AND PASS THE JOURNAL ENTRY AS SHOWN IN OPTION C

IE,

DEBIT INSURANCE EXPENSE          11000

            CREDIT PREPAID INSURANCE                     11000

THANK YOU ,