On December 31, Carmack Company's Prepaid Insurance account had a balance before adjustment of $6,000. The insurance was purchased on July 1 of the same year for one year of insurance coverage, with coverage beginning on that date. The adjusting entry needed on December 31 is:
A. Debit Insurance Expense $3,000; credit Prepaid Insurance $3,000.
B. Debit Prepaid Insurance $6,000; credit Cash $6,000.
C. Debit Insurance Expense $6,000; credit Accounts Payable $6,000.
D. Debit Cash $6,000; credit Prepaid Insurance $6,000.
E. Debit Insurance Expense $3,000; credit Accounts Payable $3,000.
Answer: A
You might also like to view...
The Body Shop, Timberland, and Patagonia behave in environmentally responsible ways that differentiate them from competitors, build consumer preference, and achieve notable sales and profit gains. This is an example of ________
A) social responsibility B) technology C) globalization D) collaboration E) goodwill
Fault tolerance is the ability of the system to continue operation when part of the system fails due to hardware failure, application program error, or operator error
Indicate whether the statement is true or false
Why is search engine optimization an important process for online marketers?
What will be an ideal response?
Which of the following is not an example of an original equipment manufacturer (OEM)?
a. Dell buys LCD displays from LG electronics and offers them under the Dell brand to its PC customers b. Dell buys dynamic random access memory (DRAM) from Samsung and integrates these into its PCs c. Apple buys disk drives from Hitachi for its iPod digital music player d. Intel supplies microprocessors to all the major PC manufacturers e. Apple buys printer engines from Canon for its laser printers