Under the Alternative Method for Recording Prepaid Expenses, Which Is

question 90

Short Answer

Under the alternative method for recording prepaid expenses, which is the correct set of journal entries?
A)
$\begin{array}{|l|l|}\hline {\text { Initial Entry }} &{\text { Adjusting Entry }} \\\hline \text { Prepaid Insurance } & \text { Cash } \\\hline \text { Insurance Expense } & \text { Prepaid Insurance } \\\hline\end{array}$
B)
$\begin{array}{|l|l|}\hline {\text { Initial Entry }} &{\text { Adjusting Entry }} \\\hline \text { Prepaid Insurance } & \text { Insurance Expense } \\\hline \text { Cash } & \text { Prepaid Insurance } \\\hline\end{array}$
C)
$\begin{array}{|l|l|}\hline {\text { Initial Entry }} &{\text { Adjusting Entry }} \\\hline \text { Prepaid Insurance } & \text { Prepaid Insurance } \\\hline \text { Cash } & \text { Insurance Expense } \\\hline\end{array}$
D)
$\begin{array}{|l|l|}\hline{\text { Initial Entry }} & {\text { Adjusting Entry }} \\\hline \text { Insurance Expense } & \text { Prepaid Insurance } \\\hline \text { Cash } & \text { Insurance Expense } \\\hline\end{array}$
E)
$\begin{array}{|l|l|}\hline {\text { Initial Entry }} &{\text { Adjusting Entry }} \\\hline \text { Cash } & \text { Prepaid Insurance } \\\hline \text { Insurance Expense } & \text { Insurance Expense } \\\hline\end{array}$

• A)
• \(\begin{array}{|l|l|}
• \hline {\text { Initial Entry }} &{\text { Adjusting Entry }} \\
• \hline \text { Prepaid Insurance } & \text { Cash } \\
• \hline \text { Insurance Expense } & \text { Prepaid Insurance } \\
• \hline
• \end{array}\)
• B)
• \(\begin{array}{|l|l|}
• \hline {\text { Initial Entry }} &{\text { Adjusting Entry }} \\
• \hline \text { Prepaid Insurance } & \text { Insurance Expense } \\
• \hline \text { Cash } & \text { Prepaid Insurance } \\
• \hline
• \end{array}\)
• C)
• \(\begin{array}{|l|l|}
• \hline {\text { Initial Entry }} &{\text { Adjusting Entry }} \\
• \hline \text { Prepaid Insurance } & \text { Prepaid Insurance } \\
• \hline \text { Cash } & \text { Insurance Expense } \\
• \hline
• \end{array}\)
• D)
• \(\begin{array}{|l|l|}
• \hline{\text { Initial Entry }} & {\text { Adjusting Entry }} \\
• \hline \text { Insurance Expense } & \text { Prepaid Insurance } \\
• \hline \text { Cash } & \text { Insurance Expense } \\
• \hline
• \end{array}\)
• E)
• \(\begin{array}{|l|l|}
• \hline {\text { Initial Entry }} &{\text { Adjusting Entry }} \\
• \hline \text { Cash } & \text { Prepaid Insurance } \\
• \hline \text { Insurance Expense } & \text { Insurance Expense } \\
• \hline
• \end{array}\)

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Definitions:

Ionic Compound

A composition of ions united by the power of electrostatic interactions, identified as ionic bonding.

Magnesium

A lightweight, silvery-white metallic element (Mg) that is highly reactive, used in alloys, fireworks, and as a reducing agent in chemical reactions.

Nitrate

A polyatomic ion with a chemical formula of NO3-; commonly found in fertilizers and explosive materials.

Physical Properties

Physical properties are attributes of a substance that can be observed or measured without changing its chemical composition, such as density, boiling point, and melting point.