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What is the proper adjusting entry at December 31, the end of the accounting period, if the balance in the prepaid insurance account is $8,350 before adjustment, and the unexpired amount per analysis of
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What is the proper adjusting entry at December 31, the end of the accounting period, if the balance in the prepaid insurance account is $8,350 before adjustment, and the unexpired amount per analysis of policies is $3,550?

User Ray Vernagus
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1 Answer

3 votes

Answer:

Insurance $4,800 (debit)

prepaid insurance $4,800 (credit)

Step-by-step explanation:

In order to find out adjusting entries. firstly, we need to calculate the difference between prepaid insurance account and Insurance account.

That could be done by subtracting $3,550 from $8,350.

Difference = 8350-3550= 4800

User Swapnali
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