Question

Requirement 1. Journalize the adjusting entries. ​(Record debits​ first, then credits. Exclude explanations from any journal​ entries.) a. Prepaid​ insurance, beginning, $ 600. Payments for insurance during the​ period, $ 2 comma 600. Prepaid​ insurance, ending, $ 400. Journalize the adjusting entries.

Answer 1

Answer:

The journal entry for the following is shown below:

Explanation:

The journal entry for the following is as follows:

Insurance expense A/c.......................Dr     $2,800

   Prepaid Insurance A/c.............................Cr   $2,800

In order to record the prepaid insurance, the account of insurance expense is debited wheres as the account of prepaid insurance is credited.

Working Note:

Amount = Beginning amount of prepaid insurance + Payment for insurance - Ending balance of prepaid insurance

= $600 + $2,600 - $400

= $3,200 - $400

= $2,800