(solution) Nelson properties purchased hazard insurance from Sheild

(solution) Nelson properties purchased hazard insurance from Sheild

Nelson properties purchased hazard insurance from Sheild Insurance Company on 12/1/14. Nelson Properties paid $6,120 for 12 months’ coverage.

a. Record the $6120 payment for insurance

b. Journalize the adjusting entry on 12/31/14

Answer:3
1-Dec-14 Prepaid Insurance
Cash 6120 31-Dec-14 Insurance expenses
Prepaid Insurance 510 6120 510