Question
Yummy Foods purchased a two-year fire and extended coverage insurance policy on August 1, 2024, and charged the $4,560 premium to Insurance expense. At its
Yummy Foods purchased a two-year fire and extended coverage insurance policy on August 1, 2024, and charged the $4,560 premium to Insurance expense. At its December 31, 2024, year-end, Yummy Foods would record which of the following adjusting entries?
Multiple Choice
| Account Title | Debit | Credit |
|---|---|---|
| Insurance expense | 950 | |
| Prepaid insurance | 3,610 | |
| Insurance payable | 4,560 |
| Account Title | Debit | Credit |
|---|---|---|
| Prepaid insurance | 3,610 | |
| Insurance expense | 3,610 |
| Account Title | Debit | Credit |
|---|---|---|
| Prepaid insurance | 950 | |
| Insurance expense | 950 |
| Account Title | Debit | Credit |
|---|---|---|
| Insurance expense | 950 | |
| Prepaid insurance | 950 |
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Audit Planning A Risk Based Approach
Authors: K. H. Spencer Pickett
1st Edition
047169052X, 978-0471690528
