On January 2, 2015, Superchunk Purchased a General Liability Insurance $\quad$

Short Answer

On January 2, 2015, Superchunk purchased a general liability insurance policy for $2,700 for coverage for the calendar year. The entire $2,700 was charged to Insurance Expense on January 2, 2015. If the firm prepares monthly financial statements, the proper adjusting entry on January 31, 2015, will be: a. Insurance Expense $\quad$$\quad$ 2,475
$\quad$ Prepaid Insurance . $\quad$$\quad$ 2,475
b. Prepaid Insurance $\quad$$\quad$ 2,475
$\quad$ Insurance Expense $\quad$$\quad$ 2,475
c. Insurance Expense $\quad$$\quad$ 225
$\quad$ Prepaid Insurance. $\quad$$\quad$ 225
d. Prepaid Insurance $\quad$$\quad$ 225
$\quad$ Insurance Expense $\quad$$\quad$ 225