Essay
On January 1 2016 Bottle Rockets Corp. purchased a general liability insurance policy for $9000 to provide coverage for the calendar year.
1. If the company recorded the policy as an asset when purchased what is the monthly adjusting journal entry that should be recorded at January 31 2016?
*2. If the company expensed the cost of the policy on January 1 2016 what is the monthly adjusting entry that should be recorded at January 31 2016?
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