Metro collected the full $1,200 on April 1, 20X1. Metro made the following journal entry to record…

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

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