West Company paid $5,200 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 $5,200, and no adjustments had been made previously. The adjusting entry required on December 31 is:

Question

Answer

Debit Insurance Expense, $1,300; credit Prepaid Insurance, $1,300.

Answer

Debit Prepaid Insurance, $2,600; credit Insurance Expense, $2,600.

Answer

Debit Insurance Expense, $2,600; credit Prepaid Insurance, $2,600.

Answer

Debit Prepaid Insurance, $1,300; credit Insurance Expense, $1,300.

Answer

Debit Cash, $5,200; Credit Prepaid Insurance, $5,200.

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West Company paid $5,200 for a 4-month insurance premium in advance on November ...

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