What Is the Proper Adjusting Entry at June 30 the End

question 196

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 $15400 and unexpired amounts per analysis of policies of $5000?

• A) Debit Insurance Expense $5000; Credit Prepaid Insurance $5000.
• B) Debit Insurance Expense $15400; Credit Prepaid Insurance $15400.
• C) Debit Prepaid Insurance $10400; Credit Insurance Expense $10400.
• D) Debit Insurance Expense $10400; Credit Prepaid Insurance $10400.

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Definitions:

Retroactive Interference

A memory phenomenon where newer information interferes with the recall of older information.

List Differentiation

An ability to distinguish between memories, reducing the level of interference.

Memory Reconstruction

The alteration of a memory to provide a consistent view of the world.

Witnesses Recall

The ability of witnesses to remember and recount details of events, often used in the context of legal proceedings and psychology.