Question
On October 1, 2012, the Jernigan Company paid $4,800 for a one-year insurance policy. On December 31, 2012, the adjusting entry would include a: a.
On October 1, 2012, the Jernigan Company paid $4,800 for a one-year insurance policy. On December 31, 2012, the adjusting entry would include a:
| a. | debit to Insurance Expense, $3,600. | |
| b. | credit to Insurance Payable, $1,200. | |
| c. | credit to Prepaid Insurance, $1,200. | |
| d. | debit to Insurance Expense, $4,000. |
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Financial Accounting An Introduction To Concepts Methods And Uses
Authors: Clyde P. Stickney, Roman L. Weil
12th Edition
0324381980, 978-0324381986
