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Harrod Company paid $6,200 for a 4-month insurance premium in advance on November 1, with coverage beginning on that date. The balance in the prepaid insurance account before adjustment at the end of the year is $6,200, and no adjustments had been made previously. The adjusting entry required on December 31 is:Debit Prepaid Insurance, $2,400; credit Insurance Expense, $2,400.
(a) Debit Cash, $4,800; Credit Prepaid Insurance, $4,800.
(b) Debit Insurance Expense, $1,200; credit Prepaid Insurance, $1,200.
(c) Debit Prepaid Insurance, $1,200; credit Insurance Expense, $1,200.
(d) Debit Insurance Expense, $2,400; credit Prepaid Insurance, $2,400.
Answers: 3
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Harrod Company paid $6,200 for a 4-month insurance premium in advance on November 1, with coverage b...
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