The trial balance of Nixon Company as of January 31, 2016, after the company com
ID: 2406251 • Letter: T
Question
The trial balance of Nixon Company as of January 31, 2016, after the company completed the first month of operations, is shown in the partial worksheet below.
Complete the worksheet by making the following adjustments: supplies on hand at the end of the month, $6,400; expired insurance, $6,600; depreciation expense for the period, $2,700.
How does the insurance adjustment affect Prepaid Insurance?
References
The trial balance of Nixon Company as of January 31, 2016, after the company completed the first month of operations, is shown in the partial worksheet below.
Explanation / Answer
Answer is Decrease
Prepaid means the advance payment, therefore prepaid insurance impies the already payment made for future.
Now 6 months expired therefore period of insurance decreased,after adjustment prepaid insurance will decrease.
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.