The chart of accounts for the Corning Company includes the following: Account Name Account Number Cash 11 Accounts Receivable 13 Prepaid Insurance 15 Accounts Payable 21 Unearned Revenue 24 Common Stock 31 Dividends 32 Fees Earned 41 Salaries Expense 54 Rent Expense 56 Page 3 of the journal contains the following entry: Description Post. Ref. Debit Credit Prepaid Insurance 1,530 Cash 1,530 What is the posting reference that will be found in the prepaid insurance account? a. 15 b. 3 c. 13 d. 11

Question

Business

Solomon Mccullough

14 December, 09:35

The chart of accounts for the Corning Company includes the following: Account Name Account Number Cash 11 Accounts Receivable 13 Prepaid Insurance 15 Accounts Payable 21 Unearned Revenue 24 Common Stock 31 Dividends 32 Fees Earned 41 Salaries Expense 54 Rent Expense 56 Page 3 of the journal contains the following entry: Description Post. Ref. Debit Credit Prepaid Insurance 1,530 Cash 1,530 What is the posting reference that will be found in the prepaid insurance account? a. 15 b. 3 c. 13 d. 11

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Answers (1)

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Mikayla Chavez · Answer 1

a. 15

Explanation:

Posting reference in an accounting entry relates to the account number reference, as there are multiple entries there are chances that wrong account might be debited or credited, as for this referring to account number reduces the probability of wrong account debited or credited.

As in the given instance,

Prepaid Insurance Account is debited as against cash, in front of Prepaid Insurance account the posting reference will be account number of Prepaid Insurance, that is: 15