On April 30, 2011, a three-year insurance policy was purchased with a cash payment of $27,900. Coverage began immediately.

-What is the amount of insurance expense that would be reported on the income statement for the year ended December 31, 2011?

$9,300

$6,200

$12,400

$3,100

-What is the amount to be reported on the balance sheet as Prepaid Insurance at December 31, 2013

$12,400

$0

$9,300

$3,100