Multiple Choice
On July 1,20A,Childe Company paid the premium in advance of $2,400 for a two-year fire insurance policy on machinery.At that time,the full amount paid was recorded as prepaid insurance.On December 31,20A,the end of the accounting year,the required adjusting entry should include which of the following?
A) a $600 debit to prepaid insurance.
B) a $600 debit to insurance expense.
C) a $2,400 credit to prepaid insurance.
D) a $2,400 debit to insurance expense.
Correct Answer:
Verified
Correct Answer:
Verified
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