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Prepaid Insurance shows a balance of zero at September 30, but Insurance Expense shows a debit balance of $2,700, representing the cost of a three-year fire insurance policy that was purchased on September 1 of the current year. On August 31 of this year, Cash was debited and Service Revenue was credited for $1,800. ?A. The $1,800 related to fees for a three-month period beginning September 1 of the current B. The company’s income tax rate is 39%. After making the above adjustments, SPC's net income before tax is $10,000. C. No income tax has been paid or recorded.
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Prepaid Insurance shows a balance of zero at September 30, but Insurance Expense shows a debit balan...
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