On January 1,2016,Prepaid Insurance of Maywood,Inc.had a beginning balance of $1,400.Three months of insurance premiums remain in the beginning balance.On February 1,2016,the company paid an annual insurance premium in the amount of $3,700 for the period beginning April 1.On February 28,2016,the balance in Prepaid Insurance is $934.The deferred expense was initially recorded as an asset.

Question

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Insurance premium per month = $1,400 / 3 = $467
Balance in Prepaid Insurance as of
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