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mylen [45]
3 years ago
13

The income statement of Sheridan Company for 2020 included the following items:

Business
1 answer:
larisa [96]3 years ago
8 0

Answer:

cash paid for insurance premium 24,000

Explanation:

We will solve using the beginning nad ending balance along with the insurance expense:

We construct the following identity

beginning prepaid insurance

+ premium on insurance (acquired)

- insurance expense (exired)

equals to

ending prepaid insurance (unexpired at end of the period)

2,200 + premium - 23,100 = 3,100

premium = 3,100 + 23,100 - 2,200 = 24,000

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