For Each Separate Case Below Follow The Three Step Process For Adjusting The Prepaid Asset Account At December 31 Step 1 (57.74 KiB) Viewed 38 times
For Each Separate Case Below Follow The Three Step Process For Adjusting The Prepaid Asset Account At December 31 Step 2 (48.74 KiB) Viewed 38 times
For each separate case below, follow the three-step process for adjusting the prepaid asset account at December 31. Step 1: Determine what the current account balance equals. Step 2: Determine what the current account balance should equal. Step 3: Record the December 31 adjusting entry to get from step 1 to step 2. Assume no other adjusting entries are made during the year. a. Prepaid Insurance. The Prepaid Insurance account has a $5,200 debit balance to start the year. A review of insurance policies shows that $1,150 of unexpired insurance remains at year-end. M inces Prepaid Insurance Step 1: Determine what the current account balance equals. Step 2: Determine what the current account balance should equal. Step 3: Record the December 31 adjusting entry to get from step 1 to step 2. b. Prepaid Insurance. The Prepaid Insurance account has a $6,390 debit balance at the start of the year. A review of insurance. policies shows $1,240 of insurance has expired by year-end. Prepaid Insurance Step 1: Determine what the current account balance equals Step 2: Determine what the current account balance should equal. 2 of 10 aw < Prev Next >
2 nts eBook Hint Print References Mc b. Prepaid Insurance. The Prepaid Insurance account has a $6,390 debit balance at the start of the year. A review of insurance policies shows $1,240 of insurance has expired by year-end. Prepaid Insurance Step 1: Determine what the current account balance equals. Step 2: Determine what the current account balance should equal. Step 3: Record the December 31 adjusting entry to get from step 1 to step 2. c. Prepaid Rent. On September 1 of the current year, the company prepaid $30,000 for two years of rent for facilities being occupled that day. The company debited Prepaid Rent and credited Cash for $30,000. Prepaid Rent Step 1: Determine what the current account balance equals. Step 2: Determine what the current account balance should equal. Step 3: Record the December 31 adjusting entry to get from step 1 to step 2.
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