Response to the following problem:
On January 1, 20X1, Hope Hospital paid a three-year insurance premium of $6,480 in advance. This premium payment was recorded as a debit to prepaid insurance. What amount should be reported as prepaid insurance in the hospital's pre adjusted trial balance at August 31, 20X1?
What amount should be reported as insurance expense in the hospital's statement of operations for the nine months ended September 30, 20X1?
What amount should be reported as prepaid insurance in the hospital's balance sheet at October 31, 20X1?