Find which the adjusting entry at the end is

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Reference no: EM132696830

Problem 1: In January 1, 2020, Peach Company purchased a five-year insurance policy for $5,000. If the cost was debited to Prepaid Insurance, the adjusting entry at the end of 2020 is

1) Debit Prepaid Insurance, $1,800; credit Cash, $1,800

2) Debit Prepaid Insurance, $1,000; credit Insurance Expense, $1,000

3) Debit Prepaid Insurance, $360; credit Insurance Expense, $360

4) Debit Insurance Expense, $360; credit Prepaid Insurance, $360

5) Debit Insurance Expense, $1,000, credit Prepaid Insurance $1,000

Reference no: EM132696830

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