Question
On 7/1/x2, Neil Company purchased a 1 year insurance policy for $24,000. What is the journal entry on 12/31/x2? Select one: a. No adjusting journal
On 7/1/x2, Neil Company purchased a 1 year insurance policy for $24,000. What is the journal entry on 12/31/x2?
Select one:
a. No adjusting journal entry is required
b. Dr. Insurance Expense for $12,000 and Cr. Prepaid Insurance for $12,000
c. Dr. Insurance Expense for $4,000 and Cr. Prepaid Insurance for $4,000
d. Dr. Insurance Expense for $24,000 and Cr. Prepaid Insurance for $24,000
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Auditing A Business Risk Approach
Authors: Karla Johnstone, Audrey Gramling, Larry Rittenberg
8th edition
538476230, 978-0538476232
