Wilson company paid $ 12,000 for a 4-month insurance premium in advance on November 1, with coverage beginning on that date

Accounting Dec 01, 2020

Wilson company paid $ 12,000 for a 4-month insurance premium in advance on November 1, with coverage beginning on that date. Identify the adjusting entry required on Dec 31?

Expert Solution

Date	Account Titles and Explanation	Debit	Credit
Dec 31	Insurance Expense	6,000
	Prepaid Insurance		6,000
	($12,000 x 2/4)

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