Ask Me Help Desk

Ask Me Help Desk (https://www.askmehelpdesk.com/forum.php)
-   Accounting (https://www.askmehelpdesk.com/forumdisplay.php?f=19)
-   -   Adjusting Entries for Prepaid Insurance (https://www.askmehelpdesk.com/showthread.php?t=478738)

  • Jun 11, 2010, 06:11 PM
    jolene0879
    Adjusting Entries for Prepaid Insurance
    An examination of the prepaid Insurance account shows a balance of $10,280 at the end of an accounting period, before adjustment. Prepare entries in journal form to record the insurance expense for the period under the following independent assumptions:

    1. An examination of the insurance policies shows unexpired insurance that cost $4,935 at the end of the period.

    2. An examination of the insurance policies shows insurance that cost $1,735 has expired during the period.
  • Jun 12, 2010, 08:41 AM
    pready

    1. You need to calculate the difference between the 2 amounts. This is your insurance expense amount.

    2. The amount is given to you.

    The journal entries will be: Debit Insurance Expense for the amount and Credit Prepaid Insurance for the amount.
  • Jun 12, 2010, 05:53 PM
    jolene0879

    Thanks so much for your help and time.
  • Feb 12, 2011, 09:37 PM
    ka123
    Can you show me how to record of Unexpired insurance?
  • Feb 13, 2011, 09:17 AM
    pready

    The unexpired insurance amount will be the amount in Prepaid Insurance at the end of the acounting period after the adjusting entries have been made.

  • All times are GMT -7. The time now is 02:46 AM.