Adjusting Entry for Prepaid Insurance Cooper Inc. recorded the purchase of a three-year insurance policy on...

Adjusting Entry for Prepaid Insurance Cooper Inc. recorded the purchase of a three-year insurance policy on July 1 in the amount of $8,400 by debiting Prepaid Insurance and crediting Cash. Prepare the necessary December 31 year-end adjusting entry.

Expert Solution

Date	Account Titles and explanation	Debit	Credit
Dec 31	Insurance Expense (8400 /36 x 6)	$1, 400
	Prepaid Insurance		$1, 400
	(To record the insurance expense for the year)

ekkarill92 answered 2 years ago

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