Multiple Choice
A company purchases a one-year insurance policy on June 1 for $1,260. The adjusting entry on December 31 is
A) debit Insurance Expense, $630 and credit Prepaid Insurance, $630.
B) debit Insurance Expense, $525 and credit Prepaid Insurance, $525.
C) debit Insurance Expense, $735, and credit Prepaid Insurance, $735.
D) debit Prepaid Insurance, $630, and credit Cash, $630.
Correct Answer:
Verified
Correct Answer:
Verified
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