Multiple Choice
On June 30,a company paid a premium of $2,400 for one year of insurance coverage,which started on July 1.The company has a calendar year-end.Which of the following statements about this situation is correct?
A) On June 30,Cash would be debited for $2,400.
B) Insurance Expense of $1,200 will be reported on the income statement for the year ending December 31.
C) Prepaid Insurance of $200 will be reported on the balance sheet at December 31.
D) Prepaid Insurance of $2,400 will be reported on the balance sheet at December 31.
Correct Answer:
Verified
Correct Answer:
Verified
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