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Paid $36,000 for a three year insurance policy with coverage beginning on September 1. Make a...

Paid $36,000 for a three year insurance policy with coverage beginning on September 1. Make a general journal entry.
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Answer #1
Paid $36,000 for a three year insurance policy with coverage beginning on September 1. Make a general journal entry.
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Explanation: When the firm paid $36000 in advance for a three year insurance policy with coverage beginning on September 1, then the general journal entry will be as follows:-
Date Account Titles Debit Credit
Sep 1 Prepaid Insurance Dr. $36,000
            Cash $36,000
(To record cash paid in advance for insurance policy for 3 years)

Feel free to ask any clarification, if required. Kindly provide feedback by thumbs up, if satisfied. It will be highly appreciated. Thank you.

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