Cavalier Company Paid $2,700 for 6 Months' Insurance, Covering the Period

Multiple Choice

Cavalier Company paid $2,700 for 6 months' insurance, covering the period of April 1 to September 30. 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 April 30 is:

A) $900
B) $2,250
C) $1,800
D) $- 0-