Question

In: Accounting

A restaurant owner prepares a balance sheet on the last day of each month. On January...

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

Solutions

Expert Solution

Balance in the pre paid expense account on the last day of July = $24000*6/12

= $12,000

ekkarill92 answered 2 years ago
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