Question
Smokey Company purchases a one-year insurance policy on July 1 for $3,792. The adjusting entry on December 31 is a.debit Insurance Expense, $2,212; credit Prepaid
Smokey Company purchases a one-year insurance policy on July 1 for $3,792. The adjusting entry on December 31 is
a.debit Insurance Expense, $2,212; credit Prepaid Insurance, $2,212
b.debit Insurance Expense, $1,580; credit Prepaid Insurance, $1,580
c.debit Insurance Expense, $1,896; credit Prepaid Insurance, $1,896
d.debit Prepaid Insurance, $1,896; credit Cash, $1,896
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Bank Management Text And Cases
Authors: George H. Hempel, Alan B. Coleman, Donald G. Simonson
3rd Edition
0471621781, 978-0471621782
