Question: Yodel Company paid 3 600 on June 1 2010 for
Yodel & Company paid $3,600 on June 1, 2010, for a two-year insurance policy beginning on that date. The company recorded the entire amount as prepaid insurance. By using the following chart, calculate how much expense and prepaid insurance will be reported on the year-end financial statements. The company’s fiscal year end is December31.
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