A one-year insurance policy was purchased on June 1 for $2,400. The adjusting entry on December 31 would be:

Adjusting Journal Entry:

Debit Insurance Expense $1,400

Credit Prepaid Insurance $1,400

To record the insurance expense for the year (7 months).

Explanation:

This adjustment will cause the Prepaid Insurance account to remain $1,000.  This balance represents the insurance cost for 5 months having deducted the insurance cost for 7 months from June 1 to December 31.  So, in line with the accrual concept and the matching principle of generally accepted accounting principles, only $1,400 Insurance was incurred for the current year.  The balance will be charged to the account when the service is consumed.

idk the answer so dont listen too me

1   all nations face the problem of scarcity because there are limited resources and unlimited wants. nations do not have enough factors of production to produce everything that their population wants. entrepreneurial resources initiate businesses to make new goods and services; labor resources produce goods and services.

2 there are four factors of production: natural resources, labor resources, capital resources, and entrepreneurial resources. natural resources are raw materials from nature that are used to produce goods. trees, water, and grains are natural resources. some natural resources, such as wheat and cattle, are renewable

3 wants

things that you do not need to have in order to survive, but would like to have

needs

things that you must have in order to survive

goods

physical products

services

tasks that a business perform for customers

resources

items that people can use to make or obtain what they need or want

determine

to settle or decide by choice of alternatives or possiblities

4 i really dont know