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On January 1,2011,Ryan Company Paid the Premium on a Three-Year

Question 74

Multiple Choice

On January 1,2011,Ryan Company paid the premium on a three-year insurance policy in the amount of $6,000.At that time,the full amount paid was recorded as prepaid insurance.After recording the adjusting entry for the insurance policy on December 31,2011,Ryan Company's records would reflect what balance in the prepaid insurance account?


A) $6,000
B) $2,000
C) $3,000
D) $4,000

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