Kizspy | Question: 28
(Choose 1 answer)
What is the proper adjusting entry at December 31, the end of the accounting period, if the balance in the
prepaid insurance account is $7,750 before adjustment, and the unexpired amount per analysis of policies is
$3,250?
A. Debit Insurance Expense, $3,250; credit Prepaid Insurance, $3,250.
B. Debit Insurance Expense, $4,500; credit Prepaid Insurance, $4,500.
C. Debit Prepaid Insurance, $4,500; credit Insurance Expense, $4,500.
D. Debit Insurance Expense, $7,750; credit Prepaid Insurance, $7,750.
E. Debit Cash, $7,750; Credit Prepaid Insurance, $7,750.
