On January 1, 2016, Prepaid Insurance of Maywood, Inc. had a

On January 1, 2016, Prepaid Insurance of Maywood, Inc. had a beginning balance of $1,400. Three months of insurance premiums remain in the beginning balance

On February 1, 2016, the company paid an annual insurance premium in the amount of $3,700 for the period beginning April 1. On February 28, 2016, the balance in Prepaid Insurance is $934. The deferred expense was initially recorded as an asset.
Indicate whether the statement is true or false

ANSWER

FALSE .Insurance premium per month = $1,400 / 3 = $467
Balance in Prepaid Insurance as of