Prepaid Insurance Question

wrote

Oh please!!

What level of accounting class is this, and what is your major?

Take your book, I know you have one, and bone up on what side of the "T" account you generally record assets, liabilities, equity, revenues and expenses. From that information - it's in your book - you'll be able to answer this and many other questions.

Level 1 and Biology so accounting is not very important to me.

wrote

One day you'll be looking at being responsible for a million dollar biology grant. You had better have at least a basic concept of accounting.

Accounts that generally have a Debit balance are: Assets and Expenses.

Meaning, that if you buy a desk with cash, you decrease cash (a credit entry reduces an account that has a debit balance) and you debit furniture, which being a debit balance account would increase that account. When you pay the power bill for the office, you again credit cash and debit the electricity expense.

Now, look at the transaction again and see if you can figure it out.