Answer:
The journal entry for the following is shown below:
Explanation:
The journal entry for the following is as follows:
Insurance expense A/c.......................Dr $2,800
Prepaid Insurance A/c.............................Cr $2,800
In order to record the prepaid insurance, the account of insurance expense is debited wheres as the account of prepaid insurance is credited.
Working Note:
Amount = Beginning amount of prepaid insurance + Payment for insurance - Ending balance of prepaid insurance
= $600 + $2,600 - $400
= $3,200 - $400
= $2,800
