AccountingBLOCK

I need help with the following question...

On July 1, 2007, Thomas Company paid $2,400 for a two-year insurance policy on the building. The accounting period ends December 31. At the end of 2007, the financial statements should report On the Balance Sheet On the Income Statement

a. Prepaid insurance, $2,400 Insurance expense, $0.
b. Prepaid insurance, $0 Insurance expense, $2,400.
c. Prepaid insurance, $1,800 Insurance expense, $600.
d. Prepaid insurance, $1,200 Insurance expense, $1,200.
e. None of the above is correct.

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Sean

This is easy, it is

c. Prepaid insurance, $1,800 Insurance expense, $600