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

Step 1: Define Prepaid insuranceThe cost of an insurance policy paid for in advance of the coverage…

Answered: On October 1, McReady Company paid six…

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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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