A company paid $6,000 for a six-month insurance policy.The policy coverage began on February 1.On February 28,$100 of insurance expense must be recorded.

Name: A company paid $6,000 for a six-month insurance policy.The policy coverage began on February 1.On February 28,$100 of insurance expense must be recorded.
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Question

Quizplus · Accepted Answer

The monthly insurance expense is $1,000 ($6,000/6 months), so on February 28, $1,000 should be recorded as insurance expense, not $100.

A Company Paid $6,000 for a Six-Month Insurance Policy