Which of the Following Is the Proper Adjusting Entry, Based

question 185

Multiple Choice

Which of the following is the proper adjusting entry, based on a prepaid insurance account balance before adjustment of $14,000 and unexpired insurance of $3,000, for the fiscal year ending on April 30?

• A) debit Insurance Expense, $3,000; credit Prepaid Insurance, $3,000
• B) debit Insurance Expense, $14,000; credit Prepaid Insurance, $14,000
• C) debit Prepaid Insurance, $11,000; credit Insurance Expense, $11,000
• D) debit Insurance Expense, $11,000; credit Prepaid Insurance, $11,000