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Alpha Company's December 31, Year 1 balance sheet showed $1,700 cash, $1,000 common stock, and $700 retained earnings. The company experienced the following event during Year 2.
(1) On March 1, paid $1,200 to purchase insurance coverage for one year beginning immediately.
Based on this information alone,
a. the Year 2 balance sheet would show $200 of prepaid insurance
b. the Year 2 balance sheet would show $1000 of insurance expense.
c. the Year 2 income statement would show S1000 of prepaid insurance mices
d. the Year 2 income statement would show $200 of insurance expense
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Alpha Company's December 31, Year 1 balance sheet showed $1,700 cash, $1,000 common stock, and $700...
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