Which of the following is the proper adjusting entry based on a prepaid insurance account balance...

Which of the following is the proper adjusting entry based on a prepaid insurance account balance before adjustment of $12,834 and unexpired insurance of $4,288 for the fiscal year ending on April 30?

Expert Solution

Statement of Profit and Balance A/c Dr $ 8546

To Prepaid Insurance A/c $ 8,546

( Being Prepaid insurance relating to current fiscal year charged to statement of profit and loss . )

Amt relating to current fiscal year = Opening Prepaid insurance a/c - Unexpired insurance on closing fiscal year

= $ 12,834- $ 4,288

= $ 8,546

ekkarill92 answered 2 years ago

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