Question-analysis of prepaid account balance, Accounting Basics

Question-analysis of prepaid account balance

The following information relates to Action Sign Company for 20X2:

Insurance expense	$4,350
Prepaid insurance, December 31, 20X2	1,900
Cash outlays for insurance during 20X2	6,200

Compute the balance in the Prepaid Insurance account on January 1, 20X2.

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Accounting Basics: Question-analysis of prepaid account balance

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