Question

At December 31, the unadjusted trial balance of H&R Tacks reports Prepaid Insurance of $6,000 and Insurance Expense of $0. The insurance was purchased on July 1 and provides coverage for 24 months. Required: 10 1. Prepare the adjusting journal entry on December 31. 2. Prepare the T-accounts for each account, enter the unadjusted balances, post the adjusting journal entry, and report the adjusted balance. points Complete this question by entering your answers in the tabs below. eBook Print Required 1 Required 2 Prepare the adjusting journal entry on December 31. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) References View transaction list View journal entry worksheet Date General Journal Credit No 1 Debit 1,500 0 December 31 Insurance Expense Prepaid Insurance 1,500 < Required 1 Required 2 >
Do i put the AJE beside any of these?

Answer 1

Answer
Adjusting entry
date	account and explanation	Debit	Credit
	Insurance expense (6000/24*6)	$     1,500
	Prepaid insurance		$     1,500
	(To record insurance expense)

No AJE is required

T account
Prepaid insurance
Beg bal	$     6,000	Dec-31	$     1,500
End Bal	$     4,500

Insurance expense
Beg bal	$           -
Dec-31	$     1,500
End Bal	$     1,500

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