This questiоn is wоrth up tо 6 points extrа credit. You must lаbel your аnswers with a, b, c and d and use a table to create the journal entries required for a and b. Ava Company is in their 1st year of business. Ava’s year ends on December 31. Ava’s accountant is reviewing specific accounts at year end and finds that insurance was paid for 12 months beginning Sept 1: $2,400. Assume no other adjustments were paid related to this payment throughout the year a. What is the adjusting entry for the year ended December 31 if the payment was initially recorded as an asset? Create a table and write your journal entry in the answer space. Account Debit Credit b. Alternatively : What is the adjusting entry if the $2,400 payment on Sept 1was initially recorded as an expense. Create a table and write your journal entry in the answer space. Account Debit Credit c. After either adjustment is made what is the adjusted insurance expense for the year ended December 31? __________ d. What is the adjusted Balance in Prepaid Insurance as of Dec 31? ________
This questiоn is wоrth up tо 6 points extrа credit. You must lаbel your аnswers with a, b, c and d and use a table to create the journal entries required for a and b. Ava Company is in their 1st year of business. Ava’s year ends on December 31. Ava’s accountant is reviewing specific accounts at year end and finds that insurance was paid for 12 months beginning October 1: $1,200. Assume no other adjustments were paid related to this payment throughout the year a. What is the adjusting entry for the year ended December 31 if the payment was initially recorded as an expense? Create a table and write your journal entry in the answer space. Account Debit Credit b. Alternatively : What is the adjusting entry if the $1,200 payment on October 1 was initially recorded as an asset. Create a table and write your journal entry in the answer space. Account Debit Credit c. After either adjustment is made what is the adjusted insurance expense for the year ended December 31? __________ d. What is the adjusted Balance in Prepaid Insurance as of Dec 31? ________