Author Question: The balance in the Prepaid Insurance account before adjustment at the end of the year is 720, which ... (Read 25 times)

cmoore54 · **on:** Jul 6, 2018

The balance in the Prepaid Insurance account before adjustment at the end of the year is 720, which represents twelve months' insurance purchased on December 1 . The adjusting entry required for the month of December, on December 31, the end of the fiscal year, is
a. debit Insurance Expense, 60; credit Prepaid Insurance, 60.
b. debit Insurance Expense, 660; credit Prepaid Insurance, 660.
c. debit Prepaid Insurance, 60; credit Insurance Expense, 60.
d. debit Prepaid Insurance, 720; credit Insurance Expense, 720.
e. debit Insurance Expense, 60; credit Insurance Payable, 60.

Question 2

The FASB has congressional authority to set accounting policies.

Indicate whether the statement is true or false