Answer (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 Prepaid Insurance, $4,500:credit Insurance Expense, $4,500.
B. Debit Insurance Expense, $7,750,credit Prepaid Insurance, $7,750.
C. Debit Insurance Expense, $3,250;credit Prepaid Insurance, $3,250.
D. Debit Cash, $7,750; Credit Prepaid Insurance, $7,750.
E. Debit Insurance Expense, $4,500,credit Prepaid Insurance, $4,500.
Exit 29
