Asked by Gavin VandenTop on Jun 25, 2024
Verified
Gizmo Company purchased a one-year insurance policy on October 1 for $1,800. The adjusting entry on December 31 would be: 
Insurance Policy
A contract between an individual or entity and an insurance company, outlining the terms for premium payments and the conditions under which claims will be paid.
Adjusting Entry
An entry made at the end of an accounting period to allocate revenues and expenses to the correct period.
- Demonstrate the aptitude to create journal entries for common adjusting transactions, including prepayments, accruals, and depreciation.
- Undertake and document recalculations for prepaid expenditures and accrued fiscal responsibilities.
Verified Answer
JM
Learning Objectives
- Demonstrate the aptitude to create journal entries for common adjusting transactions, including prepayments, accruals, and depreciation.
- Undertake and document recalculations for prepaid expenditures and accrued fiscal responsibilities.
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