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The Remaining Balance in Prepaid Insurance on December 31, 2021

Question 164

Multiple Choice

The remaining balance in Prepaid Insurance on December 31, 2021 of $12,600 was for a six-month insurance policy purchased for $16,800 and in effect on July 1, 2020. What is the required adjustment amount on December 31st?


A) $2,800
B) $4,750
C) $4,500
D) $5,000
E) $8,750

Correct Answer:

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