Question: A restaurant owner prepares a balance sheet on the last day of each month. On January 1 st . the owner pre-pays $24,000 for a

A restaurant owner prepares a balance sheet on the last day of each month. On January 1^st. the owner pre-pays $24,000 for a one year liability insurance policy. What will be the balance in this pre-paid expense account on the last day of July?

a. $10,000

b. $12,000

c. $14,000

d. $24,000

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