Question

Check my work mode: This shows what is correct or incorrect for the work you have completed so far. It does not indicate completio LO Mountaineer Excavation operates in a low-lying area that is subject to heavy rains and flooding. Because of this, Mountaineer purchases one year of flood insurance in advance on March 1, paying $25,200 ($2,100/month). 0.66 points Required: 1.&2. Record the necessary entries in the Journal Entry Worksheet below. 3. Calculate the year-end adjusted balances of Prepaid Insurance and Insurance Expense (assuming the balance of Prepaid Insurance at the beginning of the year is $0). Answer is not complete. Complete this question by entering your answers in the tabs below. Required 1 and 2 Required 3 Record the necessary entries in the Journal Entry Worksheet below. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.) No Date General Journal Credit Debit 25,200 1 March 01 25,200 Prepaid Insurance Cash Rent Expense Prepaid Rent x 6,300 X x 6,300 x < Required 1 and 2 Required 3 >

Answer 1

we I the When any expense paid in advance Cie prepaid expense) have to debit account prepaid expense and Credit the account eash / Bank. $ Date Particulars Debit credit March Prepaid insurance Alor 25200 To cash Alc [Being insurance poid in advance in cash] 1. 25 200 e 25200 Alor Adjustment entry for that prepaid expense debit Expense account and Credit prepaüd expense Al for each every month & 21008 Date Particulare bebit credit 1. March Insurance 2100 To Preluiden pak 2100 Being exp for the month of March 12 April Insurance ALCDr To prepaid in wranceA K 2100 Being erp for the April] insurance 2100 9 May 2100 Insurance AlC DY 2100 Toprepaid insurance AC {Being eup for the Maymanth

4 June 2100 2100 Insurance A/c Dr To Prepaid insurance Alc. Being insurance erd for the month of Tune IDV cr Particulars TO cash 2100 Prepaid Insurance Ale Amount Am Particulars Amount 25200 MarchBy Insurance erf April By Insurance exp May By Insurance exp June By Thearance erp 2100 By balance old 16800 25200 2100 2100 25260 Balance Balance of Insurance expense $8400 of Prepaid Insurance & 16800

Insurance a/c. Dr. 14700

To prepaid insurance a/c 14700

Balance of prepaid insurance 10500

Balance of insurance exp. 14700

Once please check with this answer