10 Nov Vertigo Company paid $10,000 on July 1, 2009, for
Vertigo Company paid $10,000 on July 1, 2009, for a two-year insurance policy. It was recorded as prepaid insurance. Use the accounting equation to show the adjustment Vertigo will make to properly report expenses when preparing the December 31, 2009, financial statements. (Assume no previous adjustments to prepaid insurance have been made.)
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