Under the Alternative Method for Recording Prepaid Expenses, Which Is

question 124

Multiple Choice

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) \[\begin{array} { | l | l | }
• \hline{ \text { Initial Entry } } & { \text { Adjusting Entry } } \\
• \hline \text { Insuance Expense } & \text { Prepaid Insuance } \\
• \hline \text { Cash } & \text { Insuranes Expense } \\
• \hline
• \end{array}\]
• E) \[\begin{array} { | l | l | }
• \hline { \text { Initial Entry } } &{ \text { Adjusting Entry } } \\
• \hline \text { Cash } & \text { Prepaid Inswance } \\
• \hline \text { Insuranes Expense } & \text { Insuranes Expense } \\
• \hline
• \end{array}\]