XYZ Company records its adjusting entries at the end of every month. The following accounts weretaken from the adjusted trial balance of XYZ Company at January 31, 2007:
Prepaid Insurance $5,330
Insurance Expense $ 410
The prepaid insurance shown above relates to a policy that, when purchased, was a 2-year policy.
Calculate the number of months of the insurance policy that have expired (i.e., been used up).Assume XYZ Company has a year-end of December 31.