EM9.10 Adjusting Entry Renter Insurance

[The following information applies to the questions displayed below.]

Oops When cleaning out his jacket pocket, Cy discovers a receipt for renter insurance for the storage locker. The renter insurance was purchased from Phoenix Insurance to provide insurance coverage for the inventory that Cy planned to store in the storage locker. Mookie The Beagle Concierge purchased 1 month of renter insurance coverage for the period January 1 through January 31, 2023. Using the company credit card, Mookie The Beagle Concierge paid $18.00 on January 16, 2023 for the 1 month of insurance coverage.

So at the end of the accounting period on January 31, 1 month of rent had expired at $18.00. Since Mookie The Beagle Concierge had not recorded the transaction, the entire $18.00 should be recorded as Renter Insurance Expense with an adjusting entry to bring accounts up to date at January 31.

How would you save this adjusting entry as a recurring transaction? Make Recommendations on How to Improve Processes. Business owners are busy people, juggling multiple items at once. So occasionally accounting items are not recorded due to an oversight. Suggest two ways that Mookie The Beagle Concierge and Cy could improve processes to ensure that all accounting items are recorded in a timely manner.

a. _____________

b. _____________