Fill This Form To Receive Instant Help

Help in Homework
trustpilot ratings
google ratings


Homework answers / question archive / In January Mookie The Beagle Concierge purchased $300 of liability insurance to cover a 3 month period

In January Mookie The Beagle Concierge purchased $300 of liability insurance to cover a 3 month period

Accounting

In January Mookie The Beagle Concierge purchased $300 of liability

insurance to cover a 3 month period. So at the end of the accounting period on January 31, 1 month of rent had expired @ $100.00. ($300/3 months = $100 per month). The balance is Prepaid Insurance Expense, an asset account with future benefit. Since Mookie The Beagle Concierge recorded the entire $300 as Insurance Expense, an adjusting entry is needed to bring accounts up to date at January 31
use these 2 accounts:
Insurance Expense (Expense)
Prepaid Expenses: Insurance (Asset)

Purchase A New Answer

Custom new solution created by our subject matter experts

GET A QUOTE