Record the adjusting entry related to the company insurance

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Reference no: EM132628724

An analysis of the company's insurance policies provided the following facts:

Policy: A

Date of purchase: April 1st 2017

Months of Coverage: 24

Cost: $10,032

Policy: B

Date of Purchase: April 1st 2018

Months of Coverage: 36

Cost: 8,856

Policy: C

Date of Purchase: August 1st 2019

Months of coverage: 12

Cost: 7,632

The total premium for each policy was paid in full (for all months) at the purchase date, and the prepaid insurance account was debited for the full cost. (Year-end adjusting entries for prepaid insurance were properly recorded in all prior years.)

Problem 1: Record the adjusting entry related to the company's insurance

Problem 2: Use the information to find adjusting entries as of December 31st 2019

Reference no: EM132628724

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