Question

In: Accounting

The trial balance of Nixon Company as of January 31, 2016, after the company completed the...

The trial balance of Nixon Company as of January 31, 2016, after the company completed the first month of operations, is shown in the partial worksheet below.

  

2.

Complete the worksheet by making the following adjustments: supplies on hand at the end of the month, $6,400; expired insurance, $6,600; depreciation expense for the period, $2,700.

    

Analyze:

How does the insurance adjustment affect Prepaid Insurance?
Decrease
Increase

References

Solutions

Expert Solution

Answer is Decrease

Prepaid means the advance payment, therefore prepaid insurance impies the already payment made for future.

Now 6 months expired therefore period of insurance decreased,after adjustment prepaid insurance will decrease.

ekkarill92 answered 2 years ago
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