On October 1 of the current year, Morton Company paid $9,600 cash for a one-year insurance policy that took effect on that day. On the date of the payment, Morton recorded the following entry: Prepare the required adjusting entry at December 31 of the current year.

Question

On October 1 of the current year, Morton Company paid $9,600 cash for a one-year insurance policy that took effect on that day. On the date of the payment, Morton recorded the following entry:  Prepare the required adjusting entry at December 31 of the current year.

On October 1 of the Current Year, Morton Company Paid