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ABC Corporation pays $1,200 cash for an insurance policy on December 20, 2019. The policy covers the 6 months from January 2020 through June 2020.
ABC Corporation pays $1,200 cash for an insurance policy on December 20, 2019. The policy covers the 6 months from January 2020 through June 2020.
- Show the journal entry ABC should record on December 20, 2019.
- Briefly explain whether and how the January 2020 income statement will be affected by this transaction. Show and label any required calculations.
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