multiple select question\nselect all that apply\non march 1, lucky advertising company paid $600 for a six…

multiple select question\nselect all that apply\non march 1, lucky advertising company paid $600 for a six - month insurance policy. the $600 was debited to the prepaid insurance account. the necessary adjustment on march 31 will include which of the following entries:\n□ credit to prepaid insurance for $500\n□ credit to prepaid insurance for $100\n□ debit to insurance expense for $100\n□ debit to insurance expense for $600\nneed help? review these concept resources.\nread about the concept

multiple select question\nselect all that apply\non march 1, lucky advertising company paid $600 for a six - month insurance policy. the $600 was debited to the prepaid insurance account. the necessary adjustment on march 31 will include which of the following entries:\n□ credit to prepaid insurance for $500\n□ credit to prepaid insurance for $100\n□ debit to insurance expense for $100\n□ debit to insurance expense for $600\nneed help? review these concept resources.\nread about the concept

Answer

Explanation:

Step1: Calculate monthly insurance expense

The insurance policy is for 6 - months and costs $600. The monthly insurance expense is $\frac{600}{6}=100$.

Step2: Determine the adjusting entry

At the end of March (1 - month has passed), we need to recognize the insurance expense for that month. We debit Insurance Expense for $100 and credit Prepaid Insurance for $100.

Answer:

credit to prepaid insurance for $100, debit to insurance expense for $100