Multiple Choice
Debra paid $960 on a one-year insurance policy on March 1. The entry included a debit to Prepaid Insurance. The adjusting entry on December 31 would include a
A) debit to Prepaid Insurance for $800; and a credit to Cash for $800.
B) debit to Insurance Expense for $800; and a credit to Prepaid Insurance for $800.
C) debit to Insurance Expense for $960; and credit to Prepaid Insurance for $960.
D) debit to Cash for $960; and credit to Prepaid Insurance for $960.
Correct Answer:
Verified
Correct Answer:
Verified
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