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On December 1, a six-month liability insurance policy was purchased for $900. Analyze the required adjustment as of December 31 using T accounts, and then formally enter this adjustment in the general
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On December 1, a six-month liability insurance policy was purchased for $900. Analyze the required adjustment as of December 31 using T accounts, and then formally enter this adjustment in the general journal.

User Tonia
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1 Answer

2 votes

Answer:

See below

Step-by-step explanation:

Prepaid insurance. Insurance expense

————————————- ———————————-

debit. | Credit. Debit. | Credit

|. 150.00. 150. |

enter the debit of 150 under insurance expense in the journal

enter the credit of 150 under prepaid insurance in the journal

User Tijko
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