On March 1, 2014, Eire Co. paid $4,800 to Big North Insurance for a one-year insurance policy.
Question:
On March 1, 2014, Eire Co. paid $4,800 to Big North Insurance for a one-year insurance policy. Eire Co. has a December 31 fiscal year end and adjusts accounts annually. Complete the following for Eire Co.
(a) Prepare the March 1, 2014, journal entry.
(b) Calculate the amount of insurance that expired during 2014 and the unexpired cost at December 31, 2014.
(c) Prepare the adjusting entry required at December 31, 2014.
(d) Using T accounts, post the journal entries in (a) and (c) above, and indicate the adjusted balance in each account.
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a March 1 Prepaid Insurance 4800 Cash 4800 b Monthly cos...View the full answer
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Related Book For 
Accounting Principles Part 1
ISBN: 978-1118306789
6th Canadian edition
Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel, Barbara Trenholm, Valerie Kinnear, Joan E. Barlow
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