On August 1, a company paid the $2,400 premium on a one-year insurance policy with benefits beginning on that date. What will the balance be in the Prepaid Insurance account on the Balance Sheet for the current year ended December 31?
A)$1,200.
B)$2,400.
C)$1,000.
D)$400.
E)$1,400.

Question

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The Answer of On August 1, a company paid the $2,400 premium on a one-year insurance policy with benefits beginning on that date. What will the balance be in the Prepaid Insurance account on the Balance Sheet for the current year ended December 31?
A)$1,200.
B)$2,400.
C)$1,000.
D)$400.
E)$1,400.

On August 1, a Company Paid the $2,400 Premium on a One-Year