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QUESTION 6 Bieber Company paid $3,408 on June 1.2019 for a TWO-YEAR Insurance policy and recorded the entire amount as PREPAI
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Answer #1

Insurance utilised in current year for only seven months(out of total twenty four months)

Prepaid insurance = $3408*17/24=$ 2414

Journal entries would be:

Prepaid insurance Dr $2414

To Insurance Expenses $2414

Therefore Option D is the correct answer!

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