Ask Question
7 October, 23:41

Which of the following is the proper adjusting entry, based on a prepaid insurance account balance before adjustment of $13,194 and unexpired insurance of $2,046, for the fiscal year ending on April 30-debit Prepaid Insurance, $5,849; credit Insurance Expense, $5,849-debit Prepaid Insurance, $10,209; credit Insurance Expense, $10,209-debit Insurance Expense, $10,209; credit Prepaid Insurance, $10,209-debit Insurance Expense, $5,849; credit Prepaid Insurance, $5,849

+4
Answers (1)
  1. 8 October, 03:19
    0
    Debit Insurance expense $11,148

    Credit Prepaid insurance $11,148

    The right answer is not given in the options.

    Explanation:

    The prepaid insurance account balance is the amount unexpired or unused and as such yet to be amortized to the insurance expense account.

    Given that the unadjusted balance is $13,194 and the unexpired insurance of $2,046, for the fiscal year ending on April 30, the expired insurance is

    = $13,194 - $2,046

    = $11,148

    Adjusting entries required

    Debit Insurance expense $11,148

    Credit Prepaid insurance $11,148

    Being entries to recognize insurance expense incurred as at April 30.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Which of the following is the proper adjusting entry, based on a prepaid insurance account balance before adjustment of $13,194 and ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers