On June 1, 2019, a firm purchased a 1-year insurance policy for $2,400 and paid the full premium in advance. The insurance expense associated with this policy for the year ending December 31, 2019, is

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The insurance policy is for one year, from June 1, 2019 to May 31, 2020. However, the question asks for the insurance expense for the year ending December 31, 2019. This means that the firm will only have insurance coverage for 7 months in 2019: June, July, August, September, October, November, and December.

To calculate the insurance expense for 2019, we need to divide the premium paid by the number of months of coverage:

$2,400 / 12 months = $200 per month

$200 per month x 7 months of coverage = $1,400

Therefore, the insurance expense associated with this policy for the year ending December 31, 2019 is $1,400.

On June 1, 2019, a Firm Purchased a 1-Year Insurance