On June 30,a company purchased 1 year of insurance coverage which started immediately,paying cash of $2,400.Choose the true statement.
A)On June 30,cash would be debited for $2,400.
B)On the Income Statement for the year,insurance expense will be $1,200.
C)On the Balance Sheet at the end of the year,prepaid insurance will be $2,400.
D)On the Balance Sheet at the end of the year,prepaid insurance will be a non-current asset.

Question

Quizplus · Accepted Answer

The Answer of On June 30,a company purchased 1 year of insurance coverage which started immediately,paying cash of $2,400.Choose the true statement.
A)On June 30,cash would be debited for $2,400.
B)On the Income Statement for the year,insurance expense will be $1,200.
C)On the Balance Sheet at the end of the year,prepaid insurance will be $2,400.
D)On the Balance Sheet at the end of the year,prepaid insurance will be a non-current asset.

On June 30,a Company Purchased 1 Year of Insurance Coverage