Question #10
On July 11, 2021, A Company paid $3,600 for a two-year insurance policy that will expire on July 10, 2024. When the Company recorded this transaction on July 11, 2021, the journal entry was: select the best option
A credit to cash for $3,600 and a debit to insurance expense for $3,600.
A debit to cash for $3,600 and a debit to insurance expense for $3,600.
A debit to cash for $3,600 and a credit to prepaid insurance for $3,600.
None of the listed choices are correct.
A credit to cash for $3,600 and a debit to prepaid insurance for $3,600.
A debit to cash for $3,600, a credit to prepaid insurance for $300, and a credit to insurance expense for $3,300.
A debit to cash for $3,600 and a debit to prepaid insurance for $3,600.
A credit to cash for $3,600 and a credit to prepaid insurance for $3,600.
A credit to cash for $3,600, a debit to prepaid insurance for $3,300, and a debit to insurance expense for $300.
Submit