On December 31,2010,Avery Corporation Paid $10,000 for Next Year's Insurance $\quad$

question 24

Multiple Choice

On December 31,2010,Avery Corporation paid $10,000 for next year's insurance policy.This transaction should be recorded as follows by Avery:

• A) Insurance Expense\( \quad \)\( \quad \)10,000
• \( \quad \)Insurance Payable\( \quad \)\( \quad \)\( \quad \)\( \quad \)\( \quad \)10,000
• B) Prepaid Insurance\( \quad \)\( \quad \)\( \quad \)10,000
• \( \quad \)Insurance Payable\( \quad \)\( \quad \)\( \quad \)\( \quad \)\( \quad \)\( \quad \)10,000
• C) Prepaid Insurance\( \quad \)\( \quad \)10,000
• \( \quad \)Cash\( \quad \)\( \quad \)\( \quad \)\( \quad \)\( \quad \)\( \quad \)\( \quad \)\( \quad \)\( \quad \)10,000
• D) Insurance Payable\( \quad \)\( \quad \)10,000
• \( \quad \)Cash\( \quad \)\( \quad \)\( \quad \)\( \quad \)\( \quad \)\( \quad \)\( \quad \)\( \quad \)\( \quad \)10,000

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