The balance in the Prepaid Insurance account before adjustment at the end of the year is $480.

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The balance in the Prepaid Insurance account before adjustment at the end of the year is $480. This represents six months’ insurance paid on November 1.

The adjusting entry required on December 31 is

a. debit Insurance Expense, $160; credit Prepaid Insurance, $160.

b. debit Prepaid Insurance, $80; credit Insurance Expense, $80.

c. debit Prepaid Insurance, $420; credit Insurance Expense, $420.

d. debit Insurance Expense, $420; credit Prepaid Insurance, $420.

e. none of the above.

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College Accounting Chapters 1-26

ISBN: 9780395796993

6th Edition

Authors: Douglas J. McQuaig, Patricia A. Bille

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Question Posted: Jun 27, 2024 02:13 AM

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The balance in the Prepaid Insurance account before adjustment at the end of the year is $480.

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College Accounting Chapters 1-26

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