On January 1,2011 the Balance in the Prepaid Insurance Account

question 110

Short Answer

On January 1,2011 the balance in the prepaid insurance account was $2,500.On December 31,2011,after the 2011 adjusting entries were made,the balance of the prepaid insurance account was $1,200.During 2011,cash payments for insurance premiums amounted to $5,000,which was debited to the prepaid insurance account.Prepare the adjusting entry which must have been made at December 31,2011.

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Definitions:

Experimenter

An individual who conducts an experiment, usually in a scientific context, to test hypotheses and investigate phenomena.

Determined

Having a firm decision or being resolved in the pursuit of a goal, not wavering in determination.

Independent Variable

The variable in an experiment that is manipulated or changed by the researcher to observe its effects.

Flossing Frequency

The recommended regularity of cleaning between teeth with dental floss to prevent gum disease and dental decay.