Scorpio Travel Adjusts Its Books Each Month and Closes Its

Essay

Scorpio Travel adjusts its books each month and closes its books on December 31 each year. The trial balance at January 31, of the current year, before adjustments, follows:

-Refer to the above data. On June 1, of the previous year, the park purchased a 12-month insurance policy. Give the adjusting entry to record insurance coverage expiring in January of the current year. (Hint: The company adjusts its books on a monthly basis.)