Use the Information Below to Answer the Following Questions:
Data $\$ 80$

question 36

Short Answer

Use the information below to answer the following questions:
Data Ltd uses accrual accounting and its financial year ends on 30 June. Expenses paid in advance are treated as assets. On 1 May 2011, Data Ltd pays $480 for a one-year fire insurance policy that expires on 30 April 2012.
-What is the journal entry made by Data Ltd on 1 May 2011?
A. DR Insurance expense $\$ 80$ $\quad$ CR Prepaid insurance $\$ 80$

B. DR Insurance expense $\$ 480$ $\quad$ CR Prepaid insurance $\$ 480$

C. DR Prepaid insurance $\$ 480$ $\quad$ CR Cash $\$ 480$

D. DR Insurance expense $\$ 480$ $\quad$ CR Cash $\$ 480$

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Definitions:

Obstetric Care

Medical care and services provided to pregnant individuals, including monitoring, childbirth, and postpartum support.

ICD-9

An abbreviation for the International Classification of Diseases, Ninth Revision, a system used for coding and classifying diseases and a wide variety of signs, symptoms, abnormal findings, and external causes of injury or diseases.

ICD-9

International Classification of Diseases, 9th Revision; a coding system used for diagnosing and classifying diseases before being replaced by ICD-10.

ICD-10

The International Classification of Diseases, Tenth Revision, a medical classification list of diagnostic codes for the coding of diseases, symptoms, and procedures.