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1 point On November 1, 2019, Kasaligan Motors acquired an annual insurance policy for P12,000. Kasaligan Motors debited Cash & credited Prepaid Insurance for P12,000.
1 point On November 1, 2019, Kasaligan Motors acquired an annual insurance policy for P12,000. Kasaligan Motors debited Cash & credited Prepaid Insurance for P12,000. At the end of December 2019, P2,000 of insurance premiums expired. The journal entry to properly state all accounts involved on December 31, 2019, would be: * O DR: Insurance Expense, 2,000;DR: Prepaid Insurance, 10,000; CR: Cash 12,000 O DR: Prepaid Insurance, 2,000; CR: Insurance Expense, 2,000 DR: Insurance Expense, 2,000; CR: Prepaid Insurance, 2,000 DR: Insurance Expense, 2,000; DR: Prepaid Insurance, 22,000; CR: Cash 24,000
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