Prepaid Insurance: 3,600
Insurance expires at the rate of $344 per month.
Prepaid Insurance: 3,600
Insurance expires at the rate of $344 per month.
When you purchase the insurance the journal entry will be:
Debit Prepaid Insurance for the amount paid
Credit Cash for the amount paid
To record the expired insurance the journal entry will be:
Debit Insurance Expense for the amount of insurance expired
Credit Prepaid Insurnance for the amount of insurance expired
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