Question
On March 1, 2020, Visa paid $264 million for a one-year insurance policy starting on March 1, 2020 and running for 12 consecutive months. On
On March 1, 2020, Visa paid $264 million for a one-year insurance policy starting on March 1, 2020 and running for 12 consecutive months. On March 1, Visa made the following journal entry:
Dr. Prepaid Insurance 264 million
Cr. Cash 264 million
Visa did not make any journal entries related to the prepaid insurance after the initial journal entry. What adjusting journal entry should Visa make on September 30, 2020 related to prepaid insurance?
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Financial accounting
Authors: Walter T. Harrison Jr., Charles T. Horngren, C. William Thom
9th edition
978-0132751216, 132751127, 132751216, 978-0132751124
