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The following is a partial unadjusted Trial Balance.
Bravo Unlimited
Unadjusted Trial Balance (partial)
1/31/16 Accounts Debit Credit
Cash $32,527
Prepaid Insurance 1,800
Insurance Expense 0
Question 1: The beginning balance in the Prepaid Insurance account on January 1, 2016 was $600 and represented five months of the building liability insurance. On, January 2, 2016, Bravo Unlimited purchased a 12 month motor vehicle insurance policy. Use this information to prepare the General Journal entry (without explanation) for the required end of the month adjustment.
Discuss the above quotation, particularly as it applies to non-current assets. Do you consider Chamber's assertion is justified?
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