On April 1, 20X1, Metro Insurance Company sold a one year insurance policy covering the year ended April 1, 20X2. Metro collected the full $1,200 on April 1, 20X1. Metro made the following journal entry to record the receipt of cash in advance:
|
Cash |
1,200 |
|
|
Unearned Revenue |
1,200 |
Nine months have passed, and Metro has made no adjusting entries. Based on these facts, the adjusting entry needed by Metro at December 31, 20X1, is.
|
Unearned Revenue |
300 |
||
|
Insurance Revenue |
300 |
||
|
Insurance Revenue |
300 |
||
|
Unearned Revenue |
300 |
||
|
Unearned Revenue |
900 |
||
|
Insurance Revenue |
900 |
||
|
Insurance Revenue |
900 |
||
|
Unearned Revenue |
900 |