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blondinia [14]
3 years ago
13

ABC opened for business on January 1, 2018, and paid for two insurance policies effective that date. The liability policy was $3

6,000 for 18 months, and the crop damage policy was $12,000 for a two-year term. What was the balance in ABC's Prepaid Insurance account as of December 31, 2018
Business
1 answer:
Katyanochek1 [597]3 years ago
8 0

Answer:

$18,000

Explanation:

Data provided in the question

Liability policy for 18 months = $36,000

And, the crop damage policy = $12,000 for two years

So by considering the above information, the balance in the ending prepaid insurance account is

= Liability policy ÷ number of years

= $36,000 ÷ 2 years

= $18,000

By dividing the liability policy with the number of years we can get the ending balance and the same is shown above

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Question Completion:

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The statements about the importance of each competitive factors (but especially such highly influential factors as selling prices, S/Q ratings, and number of models/styles offered) in determining company sales volumes and market shares in a particular geographic region which is false is:

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