On September 1, 2009, Olpe Corporation paid $2,400 in advance for a one year insurance policy...

On September 1, 2009, Olpe Corporation paid $2,400 in advance for a one year insurance policy that covers the period September 1, 2009 through August 31, 2010. What amount of insurance expense should Olpe report for the year endedDecember 31, 2009?

A)$800

B)$1,200

C)$2,400

D)$0

Solutions

Expert Solution

At the time of payment of insurance premium, it will record as prepaid expenses. at year end expense of $800 ($2,400/12*4 months)

Answer will be A $800

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ekkarill92 answered 2 years ago

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