On July 1, a company paid the $2,400 premium on a one-year insurance policy with benefits beginning on that date. What will be the insurance expense on the annual income statement for the first year ended December 31?
A. $1,000.
B. $2,400.
C. $1,200.
D. $1,400.
E. $400.
Answer: C
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Answer the following statement true (T) or false (F)
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Weingartner Corporation, a merchandising company, reported sales of 4,800 units for July at a selling price of $269 per unit. The cost of goods sold (all variable) was $114 per unit and the variable selling expense was $6 per unit. The total fixed selling expense was $38,100. The variable administrative expense was $14 per unit and the total fixed administrative expense was $59,900.Required:a. Prepare a contribution format income statement for July.b. Prepare a traditional format income statement for July.
What will be an ideal response?