Page 1 of 1
5 Question 8 (5 points) On April 1, 2023, the premium on a one-year insurance policy was purchased for $6,300 cash with
Posted: Sun Jun 05, 2022 5:24 pm
by answerhappygod
- 5 Question 8 5 Points On April 1 2023 The Premium On A One Year Insurance Policy Was Purchased For 6 300 Cash With 1 (35.79 KiB) Viewed 49 times
5
Question 8 (5 points) On April 1, 2023, the premium on a one-year insurance policy was purchased for $6,300 cash with the insurance coverage beginning on that date. The books are adjusted only at year-end. Which of the following correctly describes the effect on the financial statements of the December 31, 2023 adjusting entry? Prepaid insurance will increase $1,575. O Prepaid insurance will decrease $1,575. Insurance expense will increase $1,575. Insurance expense will increase $4,725. Prepaid insurance will increase $4,725.