What is the proper adjusting entry at April 30, the end of the fiscal year, base
ID: 2488668 • Letter: W
Question
What is the proper adjusting entry at April 30, the end of the fiscal year, based on a prepaid insurance account balance before adjustment, $16,000, and unexpired amounts per analysis of policies, $6,000?
debit Prepaid Insurance, $10,000; credit Insurance Expense, $10,000
debit Insurance Expense, $16,000; credit Prepaid Insurance, $16,000
debit Insurance Expense, $6,000; credit Prepaid Insurance, $6,000
debit Insurance Expense, $10,000; credit Prepaid Insurance, $10,000
a.debit Prepaid Insurance, $10,000; credit Insurance Expense, $10,000
b.debit Insurance Expense, $16,000; credit Prepaid Insurance, $16,000
c.debit Insurance Expense, $6,000; credit Prepaid Insurance, $6,000
d.debit Insurance Expense, $10,000; credit Prepaid Insurance, $10,000
Explanation / Answer
D. debit insurance expense, 10000 ; credit prepaid Insurance , 10000
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