Multiple Choice
On November 1, 2017, Schubert Corp. paid $1,200 in advance for an insurance policy that covered the company for six months. Assuming that Schubert recorded this purchase as an asset, the adjusting entry required on December 31, 2017 would include
A) A debit to prepaid insurance for $1,200
B) A credit to prepaid insurance for $1,200
C) A credit to insurance expense for $400
D) A debit to insurance expense for $400
Correct Answer:
Verified
Correct Answer:
Verified
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