On October 1 of the Current Year,Morton Company Paid $9,600 $\begin{array}{|l|l|r|r|}\hline \text { Oct. 01 } & \text { Insurance Expense } & 9,600 & \\\hline & \text { Cash } & & 9,600 \\\hline\end{array}$

question 121

Essay

On October 1 of the current year,Morton Company paid $9,600 cash for a one-year insurance policy that took effect on that day.On the date of the payment,Morton recorded the following entry:
$\begin{array}{|l|l|r|r|}\hline \text { Oct. 01 } & \text { Insurance Expense } & 9,600 & \\\hline & \text { Cash } & & 9,600 \\\hline\end{array}$
Prepare the required adjusting entry at December 31 of the current year.

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Definitions:

Par Value

The nominal or face value of a bond, share of stock, or coupon as stated by the issuer.

Stock Split

A corporate action that increases the number of shares outstanding by issuing more shares to current shareholders proportionately.

Market Price

The market price currently for acquiring or selling a service or asset.

Dividend Income

Income received from owning shares of a company that pays dividends.