FINANCIAL ACCOUNTING
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Question 1 ✓ Saved Spector LLP has purchased annual insurance policy for the first time on February 1, 2023 for $302,500. Assuming adjusting entries have not been made on a monthly basis (i.e. no entry was booked since February 1, 2023), what entry was required for December 31, 2023? Debit Prepaid Insurance for $302,500, and Credit Cash for $302,500 Debit Cash for $25,208, and Credit Prepaid insurance for $25,208 Debit Insurance Expense for $277,292, and Credit Prepaid Insurance for $277,292 Debit Insurance Expense for $302,500, and Credit Prepaid Insurance for $302,500
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Transcribed Image Text:Question 1 (
Spector LLP has purchased annual insurance policy for the first time on February 1,
2023 for $302,500. Assuming adjusting entries have not been made on a monthly
basis (i.e. no entry was booked since February 1, 2023), what entry was required for
December 31, 2023?
Debit Prepaid Insurance for $302,500, and
Credit Cash for $302,500
Debit Cash for $25,208, and
✓ Saved
Credit Prepaid insurance for $25,208
Debit Insurance Expense for $277,292, and
Credit Prepaid Insurance for $277,292
Debit Insurance Expense for $302,500, and
Credit Prepaid Insurance for $302,500
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