Reference no: EM132569623
THE Company reported the following income statement for 2021:
Sales revenue ............... $365,000
Cost of goods sold .......... 183,000
Insurance expense ........... 48,000
Utilities expense ........... 79,000
Net income .................. $ 55,000
The following selected account balances were taken from THE Company's accounting records during 2021:
January 1, 2021 December 31, 2021
Utilities payable 37,000 24,000
Inventory 18,000 33,000
Accounts receivable 62,000 39,000
Prepaid insurance 29,000 36,000
Unearned revenue 14,000 22,000
Accounts payable 53,000 41,000
Question 1: The amount of cash paid for insurance during 2021 was equal to:
Group of answer choices
Option 1: $57,000
Option 2: $33,000
Option 3: $48,000
Option 4: $63,000
Option 5: $41,000
Option 6: $55,000
Option 7: none of the above choices are correct