On October 1, McReady Company paid six months' insurance in advance totaling $7,800. The policy begins on October 1. An adjusted trial balance prepared on December 31 would include a balance in the Prepaid Insurance account of: A. $2,600 B. $0 C. $3,900 D. $7,800

On October 1, McReady Company paid six months' insurance in advance totaling $7,800. The policy begins on October 1. An adjusted trial balance prepared on December 31 would include a balance in the Prepaid Insurance account of: A. $2,600 B. $0 C. $3,900 D. $7,800

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter4: The Adjustment Process

Section: Chapter Questions

Problem 11Q: If the Prepaid Insurance account had a balance of $12,000, representing one years policy premium,...

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Question

On October 1, McReady Company paid six months insurance in advance totaling $7,800. Please answer these general accounting question

On October 1, McReady Company paid six months' insurance in
advance totaling $7,800. The policy begins on October 1. An
adjusted trial balance prepared on December 31 would include a
balance in the Prepaid Insurance account of:
A. $2,600
B. $0
C. $3,900
D. $7,800

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