Financial accounting adjusting entry question?

A

Andy

New member
I can't figure this one out:

The prepaid insurance account is recorded at $800 on december 31, 2004 unadjusted trial balance. Analysis of the insurance coverage reveals the company has two policies that were acquired at the same premium:

a. Policy a for 3 years was acquired on january 1, 2002
b. policy b for 2 years was acquired on january 1, 2004

Thanks in advance!
 
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