An example of an adjusting entry for a prepaid item using the QBO journal is:A) Debit Credit Insurance Expense $ 1 , 000 Prepaid Insurance $ 1 , 000 \begin{array} { l c c } & ext { Debit } & ext { Credit } \ ext { Insurance Expense } & \$ 1,000\ ext { Prepaid Insurance } & & \$ 1,000 & \\end{array} Insurance Expense Prepaid Insurance Debit $1 , 000 Credit $1 , 000 B) Debit Credit Prepaid Insurance $ 1 , 000 Insurance Expense $ 1 , 000 \begin{array} { l c c } & ext { Debit } & ext { Credit } \ ext { Prepaid Insurance} & \$ 1,000\ ext { Insurance Expense } & & \$ 1,000 & \\end{array} Prepaid Insurance Insurance Expense Debit $1 , 000 Credit $1 , 000 C) Debit Credit Insurance Expense $ 1 , 000 Insurance Payable $ 1 , 000 \begin{array} { l c c } & ext { Debit } & ext { Credit } \ ext { Insurance Expense} & \$ 1,000\ ext { Insurance Payable} & & \$ 1,000 & \\end{array} Insurance Expense Insurance Payable Debit $1 , 000 Credit $1 , 000 D) Debit Credit Insurance Payable $ 1 , 000 Insurance Expense $ 1 , 000 \begin{array} { l c c } & ext { Debit } & ext { Credit } \ ext { Insurance Payable} & \$ 1,000\ ext { Insurance Expense } & & \$ 1,000 & \\end{array} Insurance Payable Insurance Expense Debit $1 , 000 Credit $1 , 000

Question

An example of an adjusting entry for a prepaid item using the QBO journal is:A)     Debit   Credit   Insurance Expense  $ 1 , 000  Prepaid Insurance  $ 1 , 000 \begin{array} { l c c }  & 	ext { Debit }  &  	ext { Credit } \	ext { Insurance Expense }  & \$ 1,000\	ext {   Prepaid Insurance }  &   & \$ 1,000  &  \\end{array}  Insurance Expense   Prepaid Insurance  ​  Debit  $1 , 000 ​  Credit  $1 , 000 ​ ​ B)     Debit   Credit   Prepaid Insurance $ 1 , 000  Insurance Expense  $ 1 , 000 \begin{array} { l c c }  & 	ext { Debit }  &  	ext { Credit } \	ext { Prepaid Insurance}  & \$ 1,000\	ext {  Insurance Expense   }  &   & \$ 1,000  &  \\end{array}  Prepaid Insurance  Insurance Expense  ​  Debit  $1 , 000 ​  Credit  $1 , 000 ​ ​ C)     Debit   Credit   Insurance Expense $ 1 , 000  Insurance Payable $ 1 , 000 \begin{array} { l c c }  & 	ext { Debit }  &  	ext { Credit } \	ext { Insurance Expense}  & \$ 1,000\	ext {  Insurance Payable}  &   & \$ 1,000  &  \\end{array}  Insurance Expense  Insurance Payable ​  Debit  $1 , 000 ​  Credit  $1 , 000 ​ ​ D)     Debit   Credit   Insurance Payable $ 1 , 000  Insurance Expense  $ 1 , 000 \begin{array} { l c c }  & 	ext { Debit }  &  	ext { Credit } \	ext {  Insurance Payable}  & \$ 1,000\	ext { Insurance Expense }  &   & \$ 1,000  &  \\end{array}  Insurance Payable  Insurance Expense  ​  Debit  $1 , 000 ​  Credit  $1 , 000 ​ ​

Dessy Christina · Accepted Answer

Final Answer : A, Explanation :  Adjusting entries for prepaid items involve moving an amount from an asset account (Prepaid Insurance) to an expense account (Insurance Expense) to recognize the expense incurred over time. This reflects the consumption of the prepaid item.

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