Asked by Andrea
On April 1, 2009, the company paid an insurance company $5,000 for a two-year fire insurance policy. The entire $5,000 was debited to insurance expense.
What is the Dec. 31, 2009 adusting journal entry?
Prepaid Insurance xx
Insurance expense xx
I can't figure out the values for this journal entry. I tried 5,000/24 * 9 = 1875 but that's wrong. Can you help me?
What is the Dec. 31, 2009 adusting journal entry?
Prepaid Insurance xx
Insurance expense xx
I can't figure out the values for this journal entry. I tried 5,000/24 * 9 = 1875 but that's wrong. Can you help me?
Answers
Answered by
Matt
Just take the $5,000 and multiply it by the remaining months.
April-December is 9 months so subtract that from 24 to get 15.
(5,000*15/24) which should equal 3,125.
April-December is 9 months so subtract that from 24 to get 15.
(5,000*15/24) which should equal 3,125.
There are no AI answers yet. The ability to request AI answers is coming soon!
Submit Your Answer
We prioritize human answers over AI answers.
If you are human, and you can answer this question, please submit your answer.