Ask Experts Questions for FREE Help!
 
Free Answers in 3 Easy Steps

Register Now		 3 Steps
 
Ask QuestionsprogressAnswer QuestionsprogressBuild ReputationprogressBecome an Expert
 
At Ask Me Help Desk you can ask questions in any topic and have them answered for free by our experts. To ask questions or participate in answering them you must register for a free account. By registering you will be able to:
  • Get free answers from experts in any of our 300+ topics.
  • Accept money for answers that you provide.
  • Communicate privately with other members (PM).
  • See fewer ads.
  Answer this Question    Ask about Accounting    Ask about another Subject  
 
PDA

jssc_michael
May 11, 2008, 04:33 AM
Details of prepaid insurance ares hown in the account as a debit march 31 2400 dollars. Colorado pays liability insurance each year on march 31st. record insurance expense for the year ended December 31..

I am just really confused on how to put this one together
CaptainForest
May 11, 2008, 09:02 PM
On March 31 you prepaid for 1 year.

Therefore, on December 31, 9 months have passed, so 9 months out of 12 months have been used up of the insurance.

Therefore...insurance expense is 9/12 of 2,400 which is 1,800

The JE at Dec 31 would be.
Dr. Insurance Expense 1,800
Cr. Prepaid Insurance 1,800