Fargo's Detective Agency purchased a two-year insurance policy on April 1, 2014, paying cash of $7,680. Its

Question:

Fargo's Detective Agency purchased a two-year insurance policy on April 1, 2014, paying cash of $7,680. Its year-end is Dei ember 31.
a. Record the journal entry on April 1, 2014.
b. Record the adjusting entry on December 31, 2014.
c. Record the adjusting entry on December 31, 2015.
d. How much of the insurance policy purchased on April 1, 2014, was actually used during the year 2016?

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