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On April 30,2018,Hawes Co

Question 231

Essay

On April 30,2018,Hawes Co.purchased a three-year insurance policy with a cash payment of $25,200.Coverage began immediately.
Required:
Part a.What is the amount of Insurance Expense relating to this insurance policy that will be reported for the year ended December 31,2018?
Part b.What is the balance of the Prepaid Insurance account at December 31,2018?

Correct Answer:

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Part a.
Monthly insurance cost = $25,200...

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