Your company purchased a twelve-month insurance policy for $36,000 in January whats the entry to record the monthly insurance expense in march

Debit Insurance expense for $3,000

Credit Prepaid insurance for $3,000

Step-by-step explanation:

Before the recording entry, the monthly insurance expense has to be calculated first as follows:

Monthly insurance expense = Prepaid insurance / n (1)

Where;

Prepaid insurance = Insurance policy amount = $36,000

n = number of months = 12

Substituting the values into equation (1), we have:

Monthly insurance expense = $36,000 / 12 = $3,000

Since the monthly insurance expense is $3,000, it implies that the insurance expense for March is $3,000.

the entry to record the monthly insurance expense in March will therefore look as follows:

Month      Account Title                     DR ($)                CR ($)              

March      Insurance expense          3,000

                    Prepaid insurance                                    3,000

               (To record monthly insurance expense for March)              

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step-by-step explanation: