in accounting, The entry to close the appropriate insurance account at the? and Rally to extend Unemployment Insurance

in accounting, The entry to close the appropriate insurance account at the?

end of the accounting period is____________

A) debit income summary; credit prepaid insurance
B) debit prepaid insurance; credit income summary
C) debit insurance expense; credit income summary
D) debit income summary; credit insurance expense


insurance best answer:

Answer by Kacey
Assuming that the prepaid insurance was first recorded as an asset, the adjusting entry at the end of the period would have been:

debit: insurance expense

credit: prepaid insurance

Therefore, the entry to close the insurance expense would be D

Debit: income summary

Credit: insurance expense

insurance

Rally to extend Unemployment Insurance


Image by wisaflcio
Photo Credit: Peter Rickman

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Orignal From: in accounting, The entry to close the appropriate insurance account at the? and Rally to extend Unemployment Insurance