On November 1 of the current year, Salinger Company paid $9,600 cash for a one-year insurance policy that took effect on that day. On the date of the payment, Salinger recorded the following entry: Nov. 01 Insurance Expense..……………………….. 9,600Cash………………….……………...9,600Assuming Salinger only prepares adjustments at year-end, prepare the required adjusting entry at December 31 of the current year.
What will be an ideal response?
| Dec. 31 | Prepaid Insurance....……………………… 8,000 |
| Insurance Expense ….……………... | 8,000 |
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