You own an insurance company. On December 1, 2015, the a client pays $12,000 to cover...

You own an insurance company. On December 1, 2015, the a client pays $12,000 to cover a building for the period December 1, 2015-November 30, 2016.

The adjusting journal entry on December 31, 2015 is:

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Expert Solution

Adjusting journal entry -

1 dec

Cash a/c dr . 12000 $

To prepaid insurance a/c 12000 $

31 Dec

Prepaid insurance A/c . Dr. 1000 $

To insurance premium a/c 1000 $

ekkarill92 answered 1 year ago

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