Question

The trial balance for Novak Corp. appears as follows: Novak Corp. Trial Balance December 31, 2017 Cash $230 Accounts Receivable 397 Prepaid Insurance 62 Supplies 137 Equipment 3040 Accumulated Depreciation, Equipment $460 Accounts Payable 292 Common Stock 910 Retained Earnings 1060 Service Revenue 2284 Salaries and Wages Expense 760 Rent Expense 380 0 $5006 $5006 If, on December 31, 2017, the insurance still unexpired amounted to $15, the adjusting entry would contain a: debit to Insurance Expense for $47. credit to Prepaid Insurance for $15. debit to Prepaid Insurance for $15. debit to Prepaid Insurance for $47.

Answer 1

Answer:

a: debit to Insurance Expense for $47

Explanation:

Based on the information given If, on December 31, 2017, the insurance still unexpired amounted to $15, the adjusting entry would contain a:

DEBIT TO INSURANCE EXPENSES FOR $47 calculated as:

Insurance expense=Prepaid Insurance -Unexpired insurance

Insurance expense=$62 -$15

Insurance expense=$47

Therefore the adjusting entry would contain a:

DEBIT TO INSURANCE EXPENSES FOR $47