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

question 26

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, $15,500, and unexpired amounts per analysis of policies of $4,500?

• A) Debit Insurance Expense, $4,500; Credit Prepaid Insurance, $4,500.
• B) Debit Insurance Expense, $15,500; Credit Prepaid Insurance, $15,500.
• C) Debit Prepaid Insurance, $11,000; Credit Insurance Expense, $11,000.
• D) Debit Insurance Expense, $11,000; Credit Prepaid Insurance, $11,000.

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Definitions:

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Flight Capacity

Can refer to either the maximum distance an aircraft can travel without refueling or the maximum number of passengers or cargo an aircraft can carry.

Probability

A measure of the likelihood that an event will occur, expressed as a number between 0 and 1, where 0 indicates impossibility and 1 indicates certainty.

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