On January 1,2016,Prepaid Insurance of Maywood Company Had a Beginning

True/False

On January 1,2016,Prepaid Insurance of Maywood Company had a beginning balance of $900.Three months of insurance premiums remain in the beginning balance.On February 1,2016,the company paid an annual insurance premium in the amount of $3,400 for the period beginning April 1.On February 28,2016,the balance in Prepaid Insurance is $600.The deferred expense was initially recorded as an asset.