April 1, 2023, Stable Insurance Company sold a two-year policy to a customer and recorded the premium payment received by debiting cash and crediting premium revenue for $1,440. It is now December 31, 2023, Stable's year end, and the company needs to prepare its adjusting entries.
-Unearned Premium Revenue at December 31, 2023 is

Question

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Unearned Premium Revenue is calculated by determining the portion of premium revenue that has not yet been earned by the end of the period. If the total premium is $1,800 for a year and the policy started on October 1, 2023, then by December 31, 2023, only 3 months of the premium have been earned. Therefore, 9 months remain unearned, which is $1,800 * (9/12) = $1,350. However, if the options provided do not match this calculation, there might be additional context or information missing from the problem statement.

April 1, 2023, Stable Insurance Company Sold a Two-Year Policy