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

question 167

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, $18,500, and unexpired amounts per analysis of policies of $6,000?

• A) Debit Insurance Expense, $6,000; Credit Prepaid Insurance, $6,000.
• B) Debit Insurance Expense, $18,500; Credit Prepaid Insurance, $18,500.
• C) Debit Prepaid Insurance, $12,500; Credit Insurance Expense, $12,500.
• D) Debit Insurance Expense, $12,500; Credit Prepaid Insurance, $12,500.

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