Exercise 5-2A Adjustment for Insurance

On December 1, a six-month liability insurance policy was purchased for $900.

Analyze the required adjustment as of December 31 using T accounts, and then formally enter this adjustment in the general journal. (Trial balance is abbreviated as TB.)

Bal.

Adj.

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If an amount box does not require an entry, leave it blank.

GENERAL JOURNAL

page

DATE

ACCOUNTTITLE

DOC. NO.

POST. REF.

DEBIT

CREDIT

1

20-- Dec. 31

1

2

2