the prepaid balance in the prepaid insurance account represent the remaining balance of two year policy...

the prepaid balance in the prepaid insurance account represent the remaining balance of two year policy purchased in April 2010
trial balance unjusted 31 October 2011
prepaid insurance 9350
the office furniture was purchased in March 1 2010 and has estimated useful life of two years of use it is expected that the furniture will be worthless
office furniture October 31 2011 unjusted trial balance
61440
what are the adjustments t for this two transactions

Expert Solution

ekkarill92 answered 1 year ago

prepaid insurance account has a balance of 9350 remaining in October 31 2011 of two year...

prepaid insurance account has a balance of 9350 remaining in October 31 2011 of two year policy purchased in April 2010 the calculation was like that 9350 /17 550 prepaid insurance for year 550 *12 = 6600 and was the right amount but why they made it that way

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