Write the December 31st Adjusting journal entry if there is

Write the December 31st Adjusting journal entry if there is one. Indicate with (adj.) the adjusting entry and put the date of the adjusting entry if there is one. 3. Insurance was paid for the next six months in the amount of $1,200 on September 1st by the firm.

Solution

Original entry for insurance paid is

unexpired/prepaid insurance account. Dr. 1200

to cash account Cr. 1200

Adjusted journal entry is for December month

Insurance expense account Dr. 200

To unexpired insurance Cr. 200

( 1200/6)

Thank you