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On October 1, 2019, Adams Company paid $5,040 for a two-year insurance policy with the insurance coverage beginning on that date. As of December 31, 2019, which of the following account balances are correct after adjusting entries have been made? Multiple ChoiceA) Prepaid insurance $0, and Insurance expense $5,040. B) Prepaid insurance $4,410, and Insurance expense $630.C) Prepaid insurance $2,520, and Insurance expense $2,520. D )Prepaid insurance $5,040, and Insurance expense $0.

On October 1, 2019, Adams Company paid $5,040 for a two-year insurance policy with the insurance coverage beginning on that date. As of December 31, 2019, which of the following account balances are correct after adjusting entries have been made? Multiple ChoiceA) Prepaid insurance $0, and Insurance expense $5,040. B) Prepaid insurance $4,410, and Insurance expense $630.C) Prepaid insurance $2,520, and Insurance expense $2,520. D )Prepaid insurance $5,040, and Insurance expense $0.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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On October 1, 2019, Adams Company paid $5,040 for a two-year insurance policy with the insurance coverage beginning on that date. As of December 31, 2019, which of the following account balances are correct after adjusting entries have been made? Multiple ChoiceA) Prepaid insurance $0, and Insurance expense $5,040. B) Prepaid insurance $4,410, and Insurance expense $630.C) Prepaid insurance $2,520, and Insurance expense $2,520. D )Prepaid insurance $5,040, and Insurance expense $0.
Transcribed Image Text:On October 1, 2019, Adams Company paid $5,040 for a two-year insurance policy with the insurance coverage beginning on that date. As of December 31, 2019, which of the following account balances are correct after adjusting entries have been made? Multiple ChoiceA) Prepaid insurance $0, and Insurance expense $5,040. B) Prepaid insurance $4,410, and Insurance expense $630.C) Prepaid insurance $2,520, and Insurance expense $2,520. D )Prepaid insurance $5,040, and Insurance expense $0.
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