Question
The prepaid insurance account had a beginning balance of $3,655 and was debited for $6,445 of premiums paid during the year. Journalize the adjusting entry
The prepaid insurance account had a beginning balance of $3,655 and was debited for $6,445 of premiums paid during the year. Journalize the adjusting entry required at the end of the year, assuming the amount of unexpired insurance related to future periods is $3,265. Refer to the Chart of Accounts for exact wording of account titles.
CHART OF ACCOUNTSGeneral Ledger
ASSETS | |
11 | Cash |
12 | Accounts Receivable |
13 | Supplies |
14 | Prepaid Insurance |
15 | Land |
16 | Equipment |
17 | Accumulated Depreciation-Equipment |
LIABILITIES | |
21 | Accounts Payable |
22 | Unearned Fees |
23 | Salaries Payable |
24 | Taxes Payable |
EQUITY | |
31 | Common Stock |
32 | Retained Earnings |
33 | Dividends |
REVENUE | |
41 | Fees Earned |
EXPENSES | |
51 | Advertising Expense |
52 | Insurance Expense |
53 | Rent Expense |
54 | Salary Expense |
55 | Supplies Expense |
56 | Utilities Expense |
57 | Depreciation Expense |
59 | Miscellaneous Expense |
Journalize the adjusting entry required at the end of the year (December 31), assuming the amount of unexpired insurance related to future periods is $3,265. Refer to the Chart of Accounts for exact wording of account titles.
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JOURNAL
ACCOUNTING EQUATION
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