Under the Alternative Method for Recording Prepaid Expenses, Which Is $\begin{array} { | c | c | } \hline \text { Initial Entry } & \text { Adjusting Entry } \\\hline\end{array}$

question 158

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)\(\begin{array} { | c | c | }
• \hline \text { Prepaid Expense } & \text { Prepaid Insurance } \\
• \hline \text { Cash } & \text { Insurance Expense } \\
• \hline
• \end{array}\)
• D)\(\begin{array} { | c | c | }
• \hline \text { Prepaid Expense } & \text { Insurance Expense } \\
• \hline \text { Cash } & \text { Prepaid Insurance } \\
• \hline
• \end{array}\)
• E)\(\begin{array} { | c | c | }
• \hline \text { Prepaid Expense } & \text { Cash } \\
• \hline \text { Insurance Expense } & \text { Prepaid Insurance } \\
• \hline
• \end{array}\)

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