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-   -   How would you journalize entries from June 1st- August 31? (https://www.askmehelpdesk.com/showthread.php?t=631743)

  • Jan 30, 2012, 10:35 AM
    dtalove
    How would you journalize entries from June 1st- August 31?
    How would you journalize an adjusting entry if the entries are from June - August. Would you just x the insurance expense x 3 to account for 3 months?
  • Jan 30, 2012, 01:15 PM
    pready
    If Aug 31 is the end of an accounting period and or are trying to do an adjusting entry for insurance used for a three month period then you are correct.

    You would have to calculate the mothly amount of insurance and times it by 3 to get the total amount of insurance used.

    The adjusting entry is:
    Debit Insurance Expense for the amount of insurance used
    Credit Prepaid Insurance for the amount insurance used

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