Question

On December 1, a six-month liability insurance policy was purchased for $900. Analyze the required adjustment as of December 31 using T accounts, and then formally enter this adjustment in the general journal.

Answer 1

See below

Step-by-step explanation:

Prepaid insurance. Insurance expense

————————————- ———————————-

debit. | Credit. Debit. | Credit

|. 150.00. 150. |

enter the debit of 150 under insurance expense in the journal

enter the credit of 150 under prepaid insurance in the journal