Account for insurance expense

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Reference no: EM131259508

Account for insurance expense. (LO 1, 3). Vertigo Company paid $10,000 on July 1, 2009, for a two-year insurance policy. It was recorded as prepaid insurance. Use the accounting equation to show the adjustment Vertigo will make to properly report expenses when preparing the December 31, 2009, financial statements, (Assume no previous adjustments to prepaid insurance have been made.)

Reference no: EM131259508

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