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    aalbro's Avatar
    aalbro Posts: 2, Reputation: 1
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    #1

    May 6, 2010, 08:11 AM
    Unexpired insurance
    If I have 7200 of pre paid insurance,on the unadjusted ledger and 2700 of unexpired insurance, how do I place this in the adjusted trial balance, This is what I have done but my debits and credits are not matching up. I have prepaid Insurance as 9900 credit and insurance expense as 4500 as a debit.
    pready's Avatar
    pready Posts: 3,197, Reputation: 207
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    #2

    May 13, 2010, 11:27 AM

    You have to calculate how much insurance was used in the accounting period 7200 - 2700 = your insurance that was used in the period. The adjusting entry will be: Debit Insurance Expense for the amount and Credit Prepaid Insurance for the amount.

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