a-company-pays-18000-for-a-12-month-insurance-policy-on-july-1st-what-adjusting-

Question

A company pays $18,000 for a 12-month insurance policy on July 1st. What adjusting entry should be made on December 31st?

Accepted Answer

Debit Insurance Expense $$9,000, Credit Prepaid Insurance 9$$,000

Answer

Debit Prepaid Insurance $$9,000, Credit Insurance Expense 9$$,000

Answer

Debit Prepaid Insurance $$18,000, Credit Insurance Expense 18$$,000

Answer

Debit Insurance Expense $$18,000, Credit Prepaid Insurance 18$$,000

A company pays \$18,000 for a 12-month insurance policy on July 1st. What adjusting entry should be made on December 31st?