Quin Dam 2 - Part 1 Harrison's is a retailer. Like many retailers. Harrison's fiscal...
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Quin Dam 2 - Part 1 Harrison's is a retailer. Like many retailers. Harrison's fiscal year ends on January 31, after the holiday shopping season. On July 1, 2020, Harrison paid $12,000 cash for a 12-month Insurance policy that took effect immediately. This is what Harrison recorded on July 1, 2020: Debit Credit Prepaid insurance 12,000 Cash 12,000 Time passes and the prepaid insurance is gradually "consumed." What is the adjusting journal entry that Harrison should record on January 31, 2021 (the end of its fiscal year) to bring accounts up to date with regard to the insurance? [How mary months of insurance coverage have been consumed?) Credit Debit 12.000 Cash Insurance expense 12.000 Credit Dett 7.000 Insurance expense Prepaid insurance 7.000 Credit Debit 6.000 Insurance expense Prepaid insurance 6.000 Credit Dehit 7.000 Prepaid insurane Insurance expense 7.000
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