Oriole Company paid $25800 on June 1, 2017 for a two-year insurance policy and recorded the...

Oriole Company paid $25800 on June 1, 2017 for a two-year insurance policy and recorded the entire amount as Insurance Expense. The December 31, 2017 adjusting entry

Expert Solution

--Till 31 Dec 2017, 7 months Insurance has been expired. Hence, on 31 Dec 2017, Prepaid Insurance must have an account balance equal to 17 months unexpired insurance.

Date	Accounts title	Debit	Credit
31-Dec-17	Prepaid Insurance ($25800 x 17 months / 24 months)	$18,275
	Insurance expense		$18,275
	(to adjust the correct balances)

ekkarill92 answered 2 years ago

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