I am in an accounting class and i just dont get this part can someone please explain it to me Thanks?

Question

A firm purchased a two – year insurance policy for $6000 on July 1, 2007. The $6,000 was debited to the prepaid insurance account. What adjustment should be made to record expired insurance on the firms July 31, 2007 worksheet?

Answer 1

what kind of insurance is it?  if it was prepaid, how could it have expired?

Answer 2

for accounting for your policy you must check http://wwwinsuranceplan4u.com

Answer 3

Not an accountant but the policy is for twenty four months.  After one month, one/twenty-fourth of the prepaid premium will need to be recorded as earned premium.  It has been used up and must become expense verses and asset.