The bookkeeper advised you that the $7524 paid to Insurance Co on 2020-07-01 for business insurance was for the 12 months to the end of June 2021. You have initially recorded this as a prepayment. You are required to create a manual journal entry to adjust the insurance expenses claimed for the month of July Manual Journal: Narration: Adjust insurance payment for end of July 2020

Date: 2020-07-31

Untick Show journal on cash basis reports

Auto Reversing N/A

Amounts are No Tax

First line: Consider which account is debited

Second Line: Consider which account is credited

For marking purposes, please make sure your manual journal narration is: Adjust insurance payment for end of July 2020