Question

What is the proper adjusting entry at june 30, the end of the fiscal year, based on a prepaid insurance account balance before adjustment, $18,500, and unexpired amounts per analysis of policies of $6,000?

Answer 1

The proper adjusting entry at June 30, the end of the fiscal year, based on the prepaid insurance account balance of $18,500 and unexpired amounts per analysis of policies of $6,000, would be to debit the Prepaid Insurance account for the amount of $6,000 and credit the Insurance Expense account for the same amount.

Step-by-step explanation:

The proper adjusting entry at June 30, the end of the fiscal year, based on the prepaid insurance account balance of $18,500 and unexpired amounts per analysis of policies of $6,000, would be to debit the Prepaid Insurance account for the amount of $6,000 and credit the Insurance Expense account for the same amount.

Answer 2

Debt insurance expenses 6000
Credit prepaid insurance 6000

prepaid insurance account balance after adjustment is
18,500−6,000=12,500