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Exercise: Preparing adjusting entries (annual) - prepaid expense. Humber culinary school, a cooking school, purchased a two-year insurance policy on April 1, 2023, paying cash
Exercise: Preparing adjusting entries (annual) - prepaid expense.
Humber culinary school, a cooking school, purchased a two-year insurance policy on April 1, 2023, paying cash of $7,680. its year-end is december 31.
a. Record the journal entry on April 1, 2023
B. How many months are between April 1, 2023 and December 31, 2023? Record the adjusting entry December 31, 2023.
c. How many months are between January 1, 2024 and December 31, 2024? Record the adjusting entry on December 32, 2024
d. How many months of the insurance policy are left in 2025?
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