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What is the proper adjusting entry at june 30, the end of the fiscal year, based on a prepaid insurance account balance before adjustment, $18,500, and unexpired amounts per analysis of policies of $6,000?

User McVenco
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2 Answers

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Final answer:

The proper adjusting entry at June 30, the end of the fiscal year, based on the prepaid insurance account balance of $18,500 and unexpired amounts per analysis of policies of $6,000, would be to debit the Prepaid Insurance account for the amount of $6,000 and credit the Insurance Expense account for the same amount.

Step-by-step explanation:

The proper adjusting entry at June 30, the end of the fiscal year, based on the prepaid insurance account balance of $18,500 and unexpired amounts per analysis of policies of $6,000, would be to debit the Prepaid Insurance account for the amount of $6,000 and credit the Insurance Expense account for the same amount.

User Liviu Costea
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1 vote
Debt insurance expenses 6000
Credit prepaid insurance 6000

prepaid insurance account balance after adjustment is
18,500−6,000=12,500
User Maida
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