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On June 1, Year 1, a company paid an $18,000 premium on a 36-month insurance policy for coverage beginning on that date. Refer to

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On June 1, Year 1, a company paid an $18,000 premium on a 36-month insurance policy for coverage beginning on that date. Refer to that policy and fill in the blanks in the following table. Balance Sheet Prepaid Insurance December 31, Year 1 December 31, Year 2 December 31, Year 3 December 31, Year 4 Income Statement Insurance Expense Accrual Basis Cash Basis Accrual Basis Cash Basis Year 1 Year 2 Year 3 Year 4 Total S 0 $ 0

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