Prepaid Insurance Accounting Homework - Plz Help Me!?

Question

A review of Justin Co. at 31 December 2007 creates the data pertaining to the preparation of annual adjusting entries.

1.Prepaid insurance is $11800. A building insurance was bought on 1 july 2006 for $7000. The policy will last 3 years. While a vehicle insurance policy was puchased on 1 January, 2007 for $6800. The policy will last 2 years.

I know the accounts are

Insurance Expense ????

Prepaid Insurance ????

I just don't know what figures to put in. Can you guys plz help me?

Answer 1

Insurance Exp (Debit) $4566.60

Prepaid Ins (Credit) $4566.60