On August 1, 2019, a firm purchased a 1-year insurance policyfor $4,500 and paid the...

On August 1, 2019, a firm purchased a 1-year insurance policy for $4,500 and paid the full premium in advance. The insurance expense associated with this policy for the year ending December 31, 2019, is

Multiple Choice $4,500. $1,875. $1,500. $2,625.

Expert Solution

Insurance expense for the year

= 4,500 * (5 months /12 months ) (i.e August to December)

= 1,875

Option B is the answer

ekkarill92 answered 2 years ago

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