We take on a one-year insurance policy against theft on June 1st, 2024, paying €12,000 annually upfront. Assuming that the company does monthly closings, what journal entry could we record on September 30th, 2024?

Question

Answer

I don't know the answer

Answer

1,000   Insurance premiums (625)       Prepaid expenses (480)  1,000

Answer

1,000   Prepaid expenses (480)       Insurance premiums (625) 1,000

Answer

1,000 Insurance premiums (625)       Cash in banks (572) 1,000

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12,000  Prepaid expenses (480)      Cash in banks (572) 12,000

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We take on a one-year insurance policy against theft on June 1st, 2024, paying €...

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