What Is the Proper Adjusting Entry at June 30, the End

question 75

Multiple Choice

What is the proper adjusting entry at June 30, the end of the fiscal year, based on a prepaid insurance account balance before adjustment, € 20,500, and unexpired amounts per analysis of policies of €4,000?

• A) Debit Insurance Expense, € 4,000; Credit Prepaid Insurance, € 4,000.
• B) Debit Insurance Expense, € 20,500; Credit Prepaid Insurance, € 20,500.
• C) Debit Prepaid Insurance, € 16,500; Credit Insurance Expense, € 16,500.
• D) Debit Insurance Expense, € 16,500; Credit Prepaid Insurance, € 16,500.

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Definitions:

Tibialis Anterior

A muscle located in the front part of the lower leg, responsible for dorsiflexion and inversion of the foot.

Gastrocnemius

A major calf muscle that's involved in walking, running, and jumping, contributing to the plantar flexion of the foot at the ankle.

Soleus

A powerful muscle in the lower leg that is involved in standing and walking; it runs from just below the knee to the heel.