Question

what is the journal entry of prepaid insurance?​

Answer 1

Answer:

Prepaid Insurance Journal Entry

When the asset is charged to expense, the journal entry is to debit the insurance expense account and credit the prepaid insurance account. Thus, the amount charged to expense in an accounting period is only the amount of the prepaid insurance asset ratably assigned to that period.

Answer 2

The initial entry is a debit of1200dollars to the prepaid insurance (asset )account and a credit of12000dollar to the cash account In each successive month for the next twelve months there should be a journals entry that debit the insurance expenses account