On January 2, 2015, Superchunk Purchased a General Liability Insurance $\quad$

question 186

Short Answer

On January 2, 2015, Superchunk purchased a general liability insurance policy for $2,700 for coverage for the calendar year. The entire $2,700 was charged to Insurance Expense on January 2, 2015. If the firm prepares monthly financial statements, the proper adjusting entry on January 31, 2015, will be: a. Insurance Expense $\quad$$\quad$ 2,475
$\quad$ Prepaid Insurance . $\quad$$\quad$ 2,475
b. Prepaid Insurance $\quad$$\quad$ 2,475
$\quad$ Insurance Expense $\quad$$\quad$ 2,475
c. Insurance Expense $\quad$$\quad$ 225
$\quad$ Prepaid Insurance. $\quad$$\quad$ 225
d. Prepaid Insurance $\quad$$\quad$ 225
$\quad$ Insurance Expense $\quad$$\quad$ 225

---

Definitions:

Gene Composition

The arrangement and types of genes present within an organism's genome.

Surface Temperature

The air temperature near the Earth's surface, influenced by sunlight, atmospheric conditions, and geographical location, critical for weather forecasts and climatology.

Carbon Dioxide Concentration

The amount of carbon dioxide molecules present in a particular volume of atmosphere, typically expressed in parts per million by volume.

Temperature Decreased

A condition where the environmental or specific area's temperature lowers from a previous point.