Business, 20.02.2020 23:29 foreignev

On January 1 a company purchased a five-year insurance policy for $2,300 with coverage starting immediately. If the purchase was recorded in the Prepaid Insurance account, and the company records adjustments only at year-end, the adjusting entry at the end of the first year is:

A.)Debit Insurance Expense, $460; credit Prepaid Insurance, $1,840.

B.)Debit Prepaid Insurance, $460; credit Insurance Expense, $460.

C.)Debit Prepaid Insurance, $1,840; credit Insurance Expense, $1,840.

D.)Debit Insurance Expense, $460; credit Prepaid Insurance, $460.

E.)Debit Prepaid Insurance, $2,300; credit Cash, $2,300.

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On January 1 a company purchased a five-year insurance policy for $2,300 with coverage starting imme...

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