On January 1, 2014, Dimes and Quarters Corp. purchased a general liability insurance policy for $9,000 to provide coverage for the calendar year.
1. If the company recorded the policy as an asset when purchased, what is the adjusting journal entry that should be recorded at January 31, 2014?
*2. If the company expensed the cost of the policy on January 1, 2014, what is the adjusting entry that should be recorded at January 31, 2014?

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The Answer of On January 1, 2014, Dimes and Quarters Corp. purchased a general liability insurance policy for $9,000 to provide coverage for the calendar year.
1. If the company recorded the policy as an asset when purchased, what is the adjusting journal entry that should be recorded at January 31, 2014?
*2. If the company expensed the cost of the policy on January 1, 2014, what is the adjusting entry that should be recorded at January 31, 2014?