On October 1, 2011, the ($ 12,000) premium on a one-year insurance policy for the building was

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On October 1, 2011, the $\$ 12,000$ premium on a one-year insurance policy for the building was paid and recorded as Prepaid Insurance. On December 31, 2011 (end of the accounting period), what adjusting entry is needed?

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Financial Accounting

ISBN: 9780078111020

7th Edition

Authors: Robert Libby, Patricia A Libby

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Question Posted: May 23, 2024 01:01 AM

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On October 1, 2011, the ($ 12,000) premium on a one-year insurance policy for the building was

Question:

a. Insurance Expense (+E) Prepaid Insurance (-A) 2,000 2,000 b. Insurance Expense (+E) 3,000 Prepaid Insurance (-A) 3,000 c. Prepaid Insurance (+A) Insurance Expense (-E) 3,000 3,000 d. Prepaid Insurance (+A) Insurance Expense (-E) 9,000 9,000

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Financial Accounting

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