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A Use the Horizontal Model or Write the Journal Entry

question 6

Essay

a. Use the horizontal model or write the journal entry to record the payment of a one-year insurance premium of $18,000 on October 1, 2016.b. Use the horizontal model or write the adjusting entry that will be made at the end of every month to show the amount of insurance premium "used" that month.c. Calculate the amount of prepaid insurance that should be reported on the December 31, 2016 balance sheet with respect to this policy.


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