A 12-month insurance policy was purchased on Dec. 1 for $4,800 and the Prepaid insurance account was initially increased for the

Question

3 years ago

5

A 12-month insurance policy was purchased on Dec. 1 for $4,800 and the Prepaid insurance account was initially increased for the

payment. The required adjusting journal entry on December 31 includes a: (Check all that apply.)A) credit to Prepaid insurance for $400. B) debit to Insurance expense for $400. C) credit to Insurance expense for $400. D) debit to Prepaid insurance for $400. E) debit to Insurance expense for $4,800.

Business

1 answer:

Aleks [24] · Answer 1 · 2022-08-11T06:40:53+03:00

Answer:

The correct option is B

Explanation:

A 12-month insurance policy was purchased on Dec. 1 for $4,800 and the Prepaid insurance account was initially increased for the payment. The required adjusting journal entry on December 31 that insurance expense would be debited for $400. Therefore, the correct option amongst the given options would be option B.