Question

I needed help with "Record the insurance policies expired during December."
Everything else is correct just issues with recording insurance.

Music-Is-Us, Inc., is a supplier of musical instruments for professional and amateur musicians. The company's accountants make adjusting entries monthly, and they make all closing entries annually. The company is growing rapidly and prides itself on having no long-term liabilities. The company has provided the following trial balance dated December 31, 2018. $ 50,000 33,000 134,000 $ 5,400 254,000 2,200 6,160 1,799,000 798,000 68,800 MUSIC-IS-US, INC. TRIAL BALANCE DECEMBER 31, 2018 Cash Marketable securities Accounts receivable Allowance for doubtful accounts Merchandise inventory Office supplies Prepaid insurance Building and fixtures Accumulated depreciation Land Accounts payable Unearned customer deposits Income taxes payable Capital stock Retained earnings Unrealized holding gain on investments Sales Cost of goods sold Bank service charges Uncollectible accounts expense Salary and wages expense Office supplies expense Insurance expense Utilities expense Depreciation expense Income tax expense 67,000 7,600 73,000 960,000 233,200 5,800 1,677,500 953,000 240 8,900 393,000 500 5,800 2,900 43,000 73,000 $3,827,500 $3,827,500 Other information pertaining to the company's trial balance is provided as follows.

1. "The company pays for its insurance policies 12 months in advance. Its most recent payment was made on November 1, 2018. The cost of this policy was slightly higher than the cost of coverage for the previous 12 months."
   
   
   
   Thanks!

Answer 1

Adjusted Journal Entry
General,Journal	Dr	Cr
Insurance Expenses($6160*2/12)	$                     1,026.67
To Prepaid Insurance		$                    1,026.67
(Amount of cash paid to hillside Mall for Advertisement)
Insurance policy was taken on November 1st,2018 for 12 months, so 2 months expired on December 31st,2018