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

question 75

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, € 20,500, and unexpired amounts per analysis of policies of €4,000?

• A) Debit Insurance Expense, € 4,000; Credit Prepaid Insurance, € 4,000.
• B) Debit Insurance Expense, € 20,500; Credit Prepaid Insurance, € 20,500.
• C) Debit Prepaid Insurance, € 16,500; Credit Insurance Expense, € 16,500.
• D) Debit Insurance Expense, € 16,500; Credit Prepaid Insurance, € 16,500.

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Definitions:

Beanpole Family

A family structure characterized by fewer children but more generations living together or maintaining close ties, resembling a long, thin pole.

Nuclear

Refers to processes, reactions, or technologies that involve the nucleus of atoms, including the energy produced from nuclear fission or fusion.

Stratified

Categorized into different levels or layers, especially in a hierarchical order.

Collective

Pertaining to or involving a group of individuals acting as a whole.