[ACPA2015]

From the trial balance, as at December 31 2010, there is a 1,100 credit for "Unexpired Insurance", a 18,500 debit for "insurance expense" and I need to make the following adjustment entry:

Insurance expense included a premium paid on December 31 in the amount of 6000 for the period commencing June 1, 2011.

Please help!

[smoothy]

Since this is homework and we don't do your assignemnts for you. Show us what you have, and tell us why you got that answer. THen we will correct you after you show the effort to do it first.

[pready]

Your insurance premium was paid for one year, but you only used in Jan, Feb, Mar, Apr, and May so you have to move the unused portion to the Prepaid Insurance account because you have not used it yet, but the amount is in the Expense account(used).

[paraclete]

he hasn't read the chapter on balance day adjustments