The balance in the Prepaid Insurance account before adjustment at ...

[cmoore54]

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

[akpaschal]

Answer to Question 1

A

Answer to Question 2

T

[cmoore54]

Wow, this really help

[nguyenhoanhat]

Thanks for the timely response, appreciate it