On May 1, 2015, the company paid $17,400 to renew it's only comprehensive insurance coverage for...

On May 1, 2015, the company paid $17,400 to renew it's only comprehensive insurance coverage for one year. The premium on the previous 1 year policy, which expired on April 30, 2015, was $15,600. The company's policy is to record all payments of insurance to an expense account when paid. Prepare the required adjusting entry on 12/31/15 related to insurance.

Expert Solution

Prepare the required adjusting entry on 12/31/15 related to insurance.

Date	accounts & explanation	debit	credit
	Prepaid insurance (17400/12)*4	5800
	Insurance expense		5800
	(To record adjusting entry)

ekkarill92 answered 2 years ago

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