Question

need help with this question

A+T Williamson Company is making adjusting entries for the year ended December 31 of the current year. In developing information for the adjusting entries, the accountant learned the following: a. A two-year insurance premium of $5,280 was paid on October 1 of the current year for coverage beginning on that date. The bookkeeper debited the full amount to Prepaid Insurance on October 1. b. At December 31 of the current year, the following data relating to Shipping Supplies were obtained from the records and supporting documents. Shipping supplies on hand, January 1 of the current year $16,000 Purchases of shipping supplies during the current year 61,500 Shipping supplies on hand, counted on December 31 of the 18,500 current year 4-5 Part 1 equired: Record the adjusting entry for insurance at December 31 of the current year. (Do not round intermediate alculations. If no entry is required for a transaction/event, select "No journal entry required" in the first account eld.) View transaction list Journal entry worksheet < 1 > Record the adjusting journal entry for insurance premium of $5,280 on December 31 of the current year. Note: Enter debits before credits. General Journal Debit Credit Transaction a. Record entry Clear entry View general journal

Answer 1

The entry would be

Date	General Journal	Debit	Credit
31 Dec	Insurance expense	660
	Prepaid Insurance		660
	(to record insurance expense for the year)

Calculation :

= (5,280/24 months) * 3 months from October to December

= 220 * 3

= 660