In: Accounting
Use the following information to calculate and prepare the adjusting entry needed to record the amount of expired insurance.
A 48 month insurance policy was purchased on March 1 2017 for $5,000.
Accounts | Debit | Credit |
Insurance expense (5,000 * 10/48) | 1041.67 | |
Prepaid Insurance | 1041.67 | |
(to record insurance expense) |
Or try entering round figure 1042