Hawk Company Paid 6 Months' Insurance in Advance, Covering the Period

Multiple Choice

Hawk Company paid 6 months' insurance in advance, covering the period of July1 to December 31. The total payment was $5,400. At the time of the payment, the entire amount was used to increase the balance in the Prepaid Insurance account. The balance in the Prepaid Insurance account as of September 30 is:

A) $3,600
B) $1,800
C) $2,700
D) $- 0-