After the year end, an auditor noticed that VHM Inc

Accounting Aug 19, 2020

After the year end, an auditor noticed that VHM Inc. accidentally recorded an insurance expenditure of $56,000 as an expense instead of properly recording it as a prepaid. The expenditure was made on the last day of the fiscal period, December 31, 2016. Write the journal entry that should be recorded to correct the prepaid insurance account. Assume the tax rate is 38%.

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