Under the Alternative Method for Recording Prepaid Expenses,which Is the Correct

question 365

Multiple Choice

Under the alternative method for recording prepaid expenses,which is the correct set of journal entries?

• A) \(\begin{array}{|l|l|}
• \hline{\text { Initial Entry }} & {\text { Adjusting Entry }} \\
• \hline \text { Insurance Expense } & \text { Prepaid Insurance } \\
• \hline \text { Cash } & \text { Insurance Expense } \\
• \hline
• \end{array}\)
• B) \(\begin{array}{|l|l|}
• \hline{\text { Initial Entry }} & {\text { Adjusting Entry }} \\
• \hline \text { Cash } & \text { Prepaid Insurance } \\
• \hline \text { Insurance Expense } & \text { Insurance Expense } \\
• \hline
• \end{array}\)
• C) \(\begin{array}{|l|l|}
• \hline {\text { Initial Entry }} & {\text { Adjusting Entry }} \\
• \hline \text { Prepaid Insurance } & \text { Prepaid Insurance } \\
• \hline \text { Cash } & \text { Insurance Expense } \\
• \hline
• \end{array}\)
• D) \(\begin{array}{|l|l|}
• \hline {\text { Initial Entry }} &{\text { Adjusting Entry }} \\
• \hline \text { Prepaid Insurance } & \text { Insurance Expense } \\
• \hline \text { Cash } & \text { Prepaid Insurance } \\
• \hline
• \end{array}\)
• E) \(\begin{array}{|l|l|}
• \hline {\text { Initial Entry }} &{\text { Adjusting Entry }} \\
• \hline \text { Prepaid Insurance } & \text { Cash } \\
• \hline \text { Insurance Expense } & \text { Prepaid Insurance } \\
• \hline
• \end{array}\)

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