GB 518 RANK Career Path Begins/gb518rank.com GB 518 RANK Career Path Begins/gb518rank.com | Page 8

A debit to an expense for $1,250
A debit to a prepaid expense for $1,250
A credit to an expense for $3,750
A debit to a prepaid expense for $3,750
A credit to a liability for $1,250
Question 24. Question :
On January 1 a company
purchased a five-year insurance policy for $1,800 with coverage
starting immediately. If the purchase was recorded in the
Prepaid Insurance account and the company records adjustments
only at year-end, the adjusting entry at the end of the first year
is:
Debit Prepaid Insurance, $1,800; credit Cash, $1,800
Debit Prepaid Insurance, $1,440; credit Insurance Expense,
$1,440Debit Prepaid Insurance, $360; credit Insurance Expense,
$360Debit Insurance Expense, $360; credit Prepaid Insurance,
$360
Debit Insurance Expense, $360; credit Prepaid Insurance, $1,440
Question 25. Question :
The adjusted trial balance
contains information pertaining to:
Asset accounts only
Balance sheet accounts only
Income statement accounts only
All general ledger accounts
Revenue accounts only
-----------------------------------------------------------------------------GB 518 Unit 3 Assignment (BTN 4-9, 4-3A, 6-4A)

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