What the end of the accounting period for enron ltd

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Problem 1: Enron Ltd's Prepaid Insurance account shows a balance of $3000, representing a two-year insurance premium paid on 1 February 2020. After recording the adjustment on 30 June 2020, the end of the accounting period:

Select one:

A Insurance expense in the income statement is $3000 and Prepaid Insurance in the balance sheet is $0.
B Insurance expense in the income statement is $625 and Prepaid Insurance in the balance sheet is $2375.
C Insurance expense in the income statement is $2375 and Prepaid Insurance in the balance sheet is $625.
D Insurance expense in the income statement is $750 and Prepaid Insurance in the balance sheet is $2250.

Reference no: EM132771374

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