I have a question that I can't seem to answer. If I have a prepaid insurance on January 1st which benefits me a full calendar year . How do I amortize for 6months on June 30th and how would I list the journal entry .


Any assitance would be more than appreciated

Ok, lets assume that the value you paid for this insurance is $1,200

On Jan. 1, you would record:
Dr. Prepaid Insurance 1,200
Cr. Cash 1,200

On June 30, you would record
Dr. Insurance Expense 600
Cr. Prepaid Insurance 600

Why 600?

Because as of June 30, you have used up 50% of your insurance (Jan 1 – June 30 = 6 months)