What is the adjusting entry? The prepaid insurance balance, $4500, is the sum of

Question

What is the adjusting entry?

The prepaid insurance balance, $4500, is the sum of three different policies. The first policy had a balance of $1000 and it had five months of coverage remaining at the beggining of this monthly cycle. The second policy's balance of $2400 represents the remaing portion of a three year policy of which one year had already elapsed at the beggining of this month. $1100 is the balance of the third policy at the beginning of the month. $350 of the third policy's cost was used during this period. (Only use one adjusting entry to adjust prepaid insurance)

Explanation / Answer

Insurance expense 650 =(1000/5)+(2400/24)+350          Prepaid expense 650

Related Questions

Navigate

• Browse (All)
• Browse W
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.