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On December 31 of Year 1 the Prepaid Insurance account showed a debit balance of $1,800, which was f coverage for the three months, January
On December 31 of Year 1 the Prepaid Insurance account showed a debit balance of $1,800, which was f coverage for the three months, January through March of Year On April 1 of Year 2 the company purcha another policy covering a two-year period starting from that date . The two-year premium of $19,200 was and debited to Prepaid Insurance . a. Prepare the adjusting entry required on December 31 of Year 2 to account for insurance expense for the year . No other adjusting entry was made during this year b. What is the balance in the Prepaid Insurance December 31 of year 2?
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