Diane's Designs purchased a one-year liability insurance policy on March 1 of a year for $4,260 and recorded it as a prepaid expense. Which of the following amounts would be recorded as insurance expense during the adjusting process at the end of Diane's first month of operations on March 31? a.$4,260 b.$3,905 c.$355 d.$426

Principles of Accounting Volume 1
19th Edition
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax
Chapter4: The Adjustment Process
Section: Chapter Questions
Problem 5EB: Reviewing insurance policies revealed that a single policy was purchased on March 1, for one years...
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Diane's Designs purchased a one-year liability insurance policy on March 1 of a year for $4,260 and recorded it as a prepaid expense. Which of the following amounts would be recorded as insurance expense during the adjusting process at the end of Diane's first month of operations on March 31?

a.$4,260
b.$3,905
c.$355
d.$426
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