On 1 October 2018 Tanya's Pools Paid $2400 for a 12

question 14

Multiple Choice

On 1 October 2018 Tanya's Pools paid $2400 for a 12 month insurance premium. The $2400 was initially recorded in the insurance expense account. The adjusting entry required to accurately represent the expired insurance at 31 December 2018, the close of the annual accounting period, is:

• A) DR Prepaid insurance $1800; CR Insurance expense $1800
• B) DR Prepaid insurance $600; CR Insurance expense $600
• C) DR Prepaid insurance $1200; CR Insurance expense $1200
• D) DR Insurance expense $200; CR Prepaid insurance $200

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