contestada

On April 1, a company paid the $2,700 premium on a three-year insurance policy with benefits beginning on that date. What amount of insurance expense will be reported on the annual income statement for the first year ended December 31? $2,025.00. $75.00. $2,700.00. $900.00. $675.00.

Respuesta :

abiolataiwo2015

The amount of insurance expense will be reported on the annual income statement for the first year ended December 31 is $675.00.

Insurance expense

Using this formula

Insurance expense=Insurance premium×Number of months/ Three years

Where:

Insurance premium=$2,700

Number of months= April to December=9 months

Three years=36 months

Let plug in the formula

Insurance expense=$2,700×9/36

Insurance expense=$675

Inconclusion The amount of insurance expense will be reported on the annual income statement for the first year ended December 31 is $675.00.

Learn more about insurance expense here:https://brainly.com/question/794346

Otras preguntas