Ask Question
2 August, 16:14

The prepaid insurance account had a beginning balance of $4,500 and was debited for $16,600 of premiums paid during the year. Journalize the adjusting entry required at the end of the year, assuming the amount of unexpired insurance related to future periods is $5,600. Refer to the Chart of Accounts for exact wording of account titles.

+4
Answers (1)
  1. 2 August, 17:15
    0
    prepaid expense 15,500 debit

    prepaid insurance 15,500 credit

    Explanation:

    The amount of unexpired insurance will be the ending balance of the account

    4,500 debit

    + 16,600 premium paid

    + / - adjustment

    5,600 ending

    4,500 + 16,600 - 5,600 = 15,500
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “The prepaid insurance account had a beginning balance of $4,500 and was debited for $16,600 of premiums paid during the year. Journalize ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers