A record of insurance policies in force and the due date of each policy is contained in the voucher register. prepaid insurance account. insurance expense account. insurance register
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On September 1, Year 1, a company paid a $24,300 premium on a 36-month insurance policy for coverage beginning on that date. Refer to that policy and fill in the blanks in the following table: Balance Sheet Prepaid Insurance Business Cash December 31, Year 1 Year 1 December 31, Year 2 December 31, Year 3 Year 3 December 31, Year 4 Year 4 Total Income Insurance Expense Accruals Cash Balance
Akash M.
The prepaid insurance account had a beginning balance of $3,755 and was debited for $6,755 of premiums paid during the year. Journalize the adjusting entry required at the end of the year, assuming the amount of unexpired insurance related to future periods is $2,640. Refer to the Chart of Accounts for exact wording of account titles.
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