Multiple Choice
On August 1, 2012, Base Line Realty purchased a two-year insurance policy for $15,000. On that date, the company debited Prepaid Insurance for $15,000. The adjusting entry on December 31, 2012, would include a debit to
A) Prepaid Insurance for $2,500
B) Prepaid Insurance for $3,125
C) Insurance Expense for $3,125
D) Insurance Expense for $2,500
Correct Answer:
Verified
Correct Answer:
Verified
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