Under the Alternative Method for Recording Prepaid Expenses,which Is the Correct

question 161

Multiple Choice

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

• A)Option A
• B)Option B
• C)Option C
• D)Option D
• E)Option E

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