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

    Jun 17, 2010, 07:59 PM
    The amount of unexpired insurance applicable to future periods is 4000
    The balance in the prepaid insurance account, before adjustment at the end of the year is $18,630.

    Journalize the adjusting entry required under each of the following alternatives for determining the amount of the adjustment.

    a. The amount of insurance expired during the year is $14,160.

    b. The amount of unexpired insurance applicable to future periods is $4,470.
    pready's Avatar
    pready Posts: 3,197, Reputation: 207
    Ultra Member
    		  
    #2

    Jun 18, 2010, 07:00 AM

    a. The amount is given to you

    b. You need to calcute the amount used. It is the differnce between the 2 amounts.

    The adjusting entry will be: Debit Insurance Expense for the amount
    Credit Prepaid Insurance for the amount
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