On April 1, a company paid the $1,350 premium on a three-year insurance policy with benefits beginning on that date. What amount of the insurance expense will be reported on the annual income statement for the year ended December 31?
A) $1,350.00.
B) $337.50.
C) $37.50.
D) $1,012.50.
E) $450.00.

Question

Quizplus · Accepted Answer

The insurance expense for the year ended December 31 is $337.50, which is 9/36 of the $1,350 premium.

On April 1, a Company Paid the $1,350 Premium on a Three-Year