Question
Recording Prepaid Asset and Year-End Adjustment AtoZ Co. purchased a 3-year insurance policy on November 1, 2020, for $5,400. a. Record the entry for the
Recording Prepaid Asset and Year-End Adjustment
AtoZ Co. purchased a 3-year insurance policy on November 1, 2020, for $5,400.
a. Record the entry for the purchase of the insurance coverage on November 1, 2020, recording the full amount as prepaid insurance.
b. Record the required adjusting entry on December 31, 2020.
Note: Round your answers to the nearest dollar. For example, enter 50 for 50.49 and enter 51 for 50.50.
| General Journal | |||
|---|---|---|---|
| Ref. | Account Name | Dr. | Cr. |
| a. | CashAccounts ReceivablePrepaid InsuranceEquipmentAccumulated DepreciationAccounts PayableAccrued Legal Fee ExpenseDeferred RevenueDividends PayableNote PayableCommon StockService RevenueDepreciation ExpenseInsurance ExpenseSalaries Expense
|
|
|
| CashAccounts ReceivablePrepaid InsuranceEquipmentAccumulated DepreciationAccounts PayableAccrued Legal Fee ExpenseDeferred RevenueDividends PayableNote PayableCommon StockService RevenueDepreciation ExpenseInsurance ExpenseSalaries Expense
|
|
| |
| b. | CashAccounts ReceivablePrepaid InsuranceEquipmentAccumulated DepreciationAccounts PayableAccrued Legal Fee ExpenseDeferred RevenueDividends PayableNote PayableCommon StockService RevenueDepreciation ExpenseInsurance ExpenseSalaries Expense
|
|
|
| CashAccounts ReceivablePrepaid InsuranceEquipmentAccumulated DepreciationAccounts PayableAccrued Legal Fee ExpenseDeferred RevenueDividends PayableNote PayableCommon StockService RevenueDepreciation ExpenseInsurance ExpenseSalaries Expense
|
| ||
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Intermediate Accounting
Authors: Loren A Nikolai, D. Bazley and Jefferson P. Jones
10th Edition
324300980, 978-0324300987
