Insurance Payment and Adjustment Journal

On July 1, 2017, Pak Toni paid insurance for one year to PT Persona amounting to 4,972,500. At the end of the period, on December 31, 2017, an adjustment journal is made. The insurance expense of 2,486,250 is debited, and the prepaid insurance of the same amount is credited. The video discusses whether this adjustment journal is correct.

On what date did Pak Toni make the insurance payment to PT Persona?

• January 1, 2017

• July 1, 2017

• December 31, 2017

• June 30, 2017

What was the total amount paid by Pak Toni for the insurance?

• 5,000,000

• 3,000,000

• 4,972,500

• 2,486,250

How is the insurance expense recorded in the adjustment journal at the end of the period?

• As an equity

• As a liability

• As an asset

• As an income

What is the amount debited to the insurance expense in the adjustment journal?

• 1,000,000

• 2,486,250

• 4,972,500

• 3,000,000

What is the amount credited to prepaid insurance in the adjustment journal?

• 1,000,000

• 4,972,500

• 3,500,000

• 2,486,250