Accounting: On April 1, a company paid $2,400 premium for a two year policy with benefits beginning that day. What will be the insurance expense on the annual income statement for the first year ended Dec 31?
Insurance expense for 2 years = $2,400
Insurance expense for 9 months (April 1 to December 31) = 2,400 x 9/12
= $900
Insurance expense to be recorded for the first year = $900
Second option is correct.
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Accounting: On April 1, a company paid $2,400 premium for a two year policy with benefits...
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