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3 years ago

The balance in the prepaid insurance account, before adjustment at the end of the year, is $18,630. The year end is March 31.

Business

1 answer:

geniusboy [140]3 years ago

8 0

Answer:

A. Dr Insurance Expense $15,300.00

Cr Prepaid Insurance 115,300.00

B. Dr Insurance Expense $15,300.00

Cr Prepaid Insurance 115,300.00

C. Dr Insurance Expense $9,880.00

Cr Prepaid Insurance $9,880.00

Explanation:

A. Preparation of the March 31 adjusting entry required when the amount of insurance expired during the year is $15,300

Dr Insurance Expense $15,300.00

Cr Prepaid Insurance 115,300.00

B. Preparation of the March 31 adjusting entry required when the amount of unexpired insurance applicable to future periods is $3,330

Dr Insurance Expense $15,300.00

Cr Prepaid Insurance $5,300.00

($18,630-$3,330)

C.Preparation of the March 31 adjusting entry required when the amount of unexpired insurance applicable to future periods is $8,750

Dr Insurance Expense $9,880.00

Cr Prepaid Insurance $9,880.00

($18,630-$8,750)

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