Purchase Solution

This post addresses journal entries for expired insurance.

Not what you're looking for?

Ask Custom Question

J. Bateman Enterprises prepaid $7,800 for a 12 month insurance policy on their delivery van beginning in October 2011. What would be the journal entry to recognize the monthly insurance that had been used up in January 2012?

Item Accounts and Explanations Post Ref DEBIT CREDIT
A Prepaid Insurance $7,800
Insurance Expense $7,800

B Cash $650
Insurance Expense $650

C Insurance Expense $650
Prepaid Insurance $650

D Insurance Expense $650
Cash $650

Answer
1. Item A is the correct entry
2. Item B is the correct entry
3. Item C is the correct entry
4. Item D is the correct entry

Purchase this Solution

Solution Summary

The solution provides the correct answer for the journal entry to recognize the monthly insurance that had been used up in January 2012 for Bateman Enterprises.

Purchase this Solution


Free BrainMass Quizzes
Economic Issues and Concepts

This quiz provides a review of the basic microeconomic concepts. Students can test their understanding of major economic issues.

Pricing Strategies

Discussion about various pricing techniques of profit-seeking firms.

Economics, Basic Concepts, Demand-Supply-Equilibrium

The quiz tests the basic concepts of demand, supply, and equilibrium in a free market.

Elementary Microeconomics

This quiz reviews the basic concept of supply and demand analysis.

Basics of Economics

Quiz will help you to review some basics of microeconomics and macroeconomics which are often not understood.