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    cplucker's Avatar
    cplucker Posts: 1, Reputation: 1
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    #1

    Mar 23, 2011, 10:35 PM
    Reclassifying entries?
    There are two insurance accounts in the trial balance. Prepaid Insurance is $9,200 and Insurance Expense is $2,800. Unexpired insurance at the statement date is $3,000.
    pready's Avatar
    pready Posts: 3,197, Reputation: 207
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    #2

    Mar 24, 2011, 05:41 PM

    The statement Unexpired insurance at the statement date is telling you that this amount should be your Prepaid Insurance ending balance, so you you need to reduce your Prepaid Insurance to get to the ending balance.
    Ronalyn_ML's Avatar
    Ronalyn_ML Posts: 5, Reputation: 1
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    #3

    Mar 25, 2011, 08:18 AM
    You were told to adjust the Insurance, $6000 worth of the Insurance had already expired so you have to debit it in Insurance Expense and credit it in Prepaid Insurance
    Ronalyn_ML's Avatar
    Ronalyn_ML Posts: 5, Reputation: 1
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    #4

    Mar 25, 2011, 08:19 AM
    Comment on Ronalyn_ML's post
    I mean 6200
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