Prepaid Insurance Accounting Homework - Plz Help Me!?
A review of Justin Co. at 31 December 2007 creates the data pertaining to the preparation of annual adjusting entries.
1.Prepaid insurance is $11800. A building insurance be bought on 1 july 2006 for $7000. The policy will last 3 years. While a vehicle insurance policy was puchased on 1 January, 2007 for $6800. The policy will second 2 years.
I know the accounts are
Insurance Expense ??
Prepaid Insurance ??
I just don't know what figures to put within. Can you guys plz help me?
Answers: Insurance Exp (Debit) $4566.60
Prepaid Ins (Credit) $4566.60