ANSWERS TO QUESTIONS

Feb. 1 Prepaid Insurance 840,000 Cash 840,000 June 30 Insurance Expense 175,000 Prepaid Insurance 175,000 ($840,000 X 5/24) BRIEF EXERCISE 3-6 Nov. 1 Cash 2,700 Unearned Rent Revenue 2,700 Dec. 31 Unearned Rent Revenue 1,800 Rent Revenue 1,800 ($2,700 X 2/3) ................
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