Catrina Company was started on January 1, 2009. During its first week of business, the company paid $3,600 for 24 months’ worth of fire insurance with an effective date of January 1, 2009. When Catrina Company prepares its income statement for the year ended December 31, 2009, how much prepaid insurance will be shown on the balance sheet at December 31, 2009, and how much insurance expense will be shown on the income statement? Is the needed adjustment at year end related to an accrual or a deferral?

  • CreatedSeptember 01, 2014
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