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Handout 018 Prepaid Insurance

Please use this handout for

Lesson 018 Adjusting Entries 2 – Prepaid Expenses (Insurance)

Prepaid Insurance
Jimin Company paid for the following insurance policies in advance:
Insurance policies Amount Date paid and started Date of end of coverage
Policy M P 7,440 April 1, 2020 March 31, 2021
Policy N 12,000 July 30, 2020 July 30, 2022
Policy L 16,200 November 1, 2020 October 31, 2023

Compute for the amounts to be reported in the financial statements as insurance expense and prepaid
insurance.

Calculations for Calculations for

INSURANCE EXPENSE PREPAID INSURANCE
Financial Statements as at and M ____ X ___ = _______ Beg. Balance _________
for the year ended N ____ X ___ = _______ Add: Payments _________
DECEMBER 31, 2020 L ____ X ___ = _______ Less: Expired _________
Total _______ End. Balance _________

Financial Statements as at and M ____ X ___ = _______ Beg. Balance _________

for the year ended N ____ X ___ = _______ Less: Expired _________
DECEMBER 31, 2021 L ____ X ___ = _______ End. Balance _________
Total _______

Financial Statements as at and M ____ X ___ = _______ Beg. Balance _________

for the year ended N ____ X ___ = _______ Less: Expired _________
DECEMBER 31, 2022 L ____ X ___ = _______ End. Balance _________
Total _______

Financial Statements as at and M ____ X ___ = _______ Beg. Balance _________

for the year ended N ____ X ___ = _______ Less: Expired _________
DECEMBER 31, 2023 L ____ X ___ = _______ End. Balance _________
Total _______

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