Question
During 2020, Toxic Release LLC paid a total of $64,000 in cash for insurance. Toxic Release's Prepaid Insurance account had a balance on January 1,
During 2020, Toxic Release LLC paid a total of $64,000 in cash for insurance. Toxic Release's Prepaid Insurance account had a balance on January 1, 2020, of $8,000 and a balance on December 31, 2020, of $5,500. The amount of Insurance Expense to be reported on Toxic Release's income statement for the year ended December 31, 2020, is _______.
A) 64000
b) 66500
c) 58500
d) 61500
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Financial Accounting Reporting And Analysis
Authors: Michael Diamond, James Stice, Earl K. Stice, James D. Stice
5th Edition
0538873019, 978-0538873017
