182 $\quad$ $\quad$ 9,000 $\quad$ Insurance Expense $\quad$ $\quad$ 9,000
B $\quad$ $\quad$

question 60

Short Answer

182. Buffalo Tom Cruises purchased a five-year insurance policy for its ships on April 1, 2015 for $60,000. Assuming that April 1 is the effective date of the policy, the adjusting entry on December 31, 2015 is a. Prepaid Insurance $\quad$$\quad$ 9,000
$\quad$ Insurance Expense $\quad$$\quad$ 9,000
b. Insurance Expense $\quad$$\quad$ 9,000
$\quad$ Prepaid Insurance $\quad$$\quad$ 9,000
c. Insurance Expense $\quad$$\quad$ 12,000
$\quad$ Prepaid Insurance $\quad$$\quad$ 12,000
d. Insurance Expense $\quad$$\quad$ 3,000
$\quad$ Prepaid Insurance $\quad$$\quad$ 3,000