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Under the Alternative Method for Recording Prepaid Expenses,which Is the Correct

Question 161

Multiple Choice

Under the alternative method for recording prepaid expenses,which is the correct set of journal entries?
 Initial Entry  Adjusting Entry \begin{array} { | c | c| } \hline \text { Initial Entry } & \text { Adjusting Entry } \\\hline\end{array}
A.
 Insurance Expense  Prepaid Insurance  Cash  Insurance Expense \begin{array}{|c|c|}\hline\text { Insurance Expense } & \text { Prepaid Insurance } \\\hline \text { Cash } & \text { Insurance Expense }\\\hline\end{array}
B.
 Cash  Prepaid Insurance  Insurance Expense  Insurance Expense \begin{array}{|c|c|}\hline\text { Cash } & \text { Prepaid Insurance } \\\hline \text { Insurance Expense } & \text { Insurance Expense }\\\hline\end{array}
C.
 Prepaid Expense  Prepaid Insurance  Cash  Insurance Expense \begin{array}{|l|c|}\hline \text { Prepaid Expense } & \text { Prepaid Insurance } \\\hline \text { Cash } & \text { Insurance Expense }\\\hline \end{array}
D.
 Prepaid Expense  Insurance Expense  Cash  Prepaid Insurance \begin{array}{|l|c|}\hline \text { Prepaid Expense } & \text { Insurance Expense } \\\hline \text { Cash } & \text { Prepaid Insurance }\\\hline\end{array}
E.
 Prepaid Expense  Cash  Insurance Expense  Prepaid Insurance \begin{array}{|l|c|}\hline \text { Prepaid Expense } & \text { Cash } \\\hline \text { Insurance Expense } & \text { Prepaid Insurance }\\\hline\end{array}


A) Option A
B) Option B
C) Option C
D) Option D
E) Option E

Correct Answer:

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