a-1. Use the horizontal model to record the above transaction. (Use amounts with + for increases and amounts with for decreases.)

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9.

value: 0.83 points

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b-1. Use the horizontal model to show the amount of insurance premium "used" that month. (Use amounts with + for increases and amounts with for decreases.)

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10.

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c. Calculate the amount of prepaid insurance that should be reported on the December 31, 2016 balance sheet with respect to this policy.

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d. If the premium had been $6,624 for a two-year period, how should the prepaid amount at December 31, 2016 be reported on the balance sheet?

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e. Prepaid expenses reflects as an asset for more meaningful net income amount.

True

False