Question
8. BAD ONE Corporation purchased two insurance policies during the current year. On February 1, the company purchased a two-year liability policy for $18,000. On
8. BAD ONE Corporation purchased two insurance policies during the current year. On February 1, the company purchased a two-year liability policy for $18,000. On May 1, it purchased a one year automobile policy for $7,200. These payments were charged to insurance expense. Boston Company has a fiscal year end of June 30. (6 Points)
Required: 1. How much insurance expense should be recognized from these policies on June 30?
2. What adjusting entry will be required on June 30?
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Survey of Accounting
Authors: Thomas P. Edmonds, Frances M. McNair, Philip R. Olds, Bor Yi
3rd Edition
978-1259683794, 77490835, 1259683796, 9780077490836, 978-0078110856
