Reference no: EM132742004

Problem 1: Which of the following statements about posting to the general ledger is true?

a) It normally occurs before entering transactions into a journal

b) It involves the transfer of journal entries to the ledger accounts

c) It involves the transfer of transactions from the trial balance to the general ledger

d) All of the choices

Problem 2: At the beginning of a period there is a balance of $4,000 in Prepaid Insurance. During the period you purchase an additional $18,000 of insurance. At the end of the period your analysis indicates that $3,000 is the amount applicable to future periods. What would be the proper adjusting entry at the end of this period?

a) Prepaid Insurance 18000 DR

Insurance Expense 18000 CR

b) Insurance Expense 19000 DR

Cash 19000 CR

c) Insurance Expense 19000 DR

Prepaid Insurance 19000 CR

d) Insurance Expense 3000 DR

Prepaid Insurance 3000 CR

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