Hall Company purchased a two-year insurance policy on December 31, 2011, for $4,000. The effect of this
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Hall Company purchased a two-year insurance policy on December 31, 2011, for $4,000.
The effect of this expenditure is a decrease in Cash and an increase in the asset Prepaid Insurance. Record the journal entry for this transaction.
Dr. . . . . . . . . . . . . . 4,000 Cr. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,000
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