Baker Company paid $3,600o n July 1,2007,for a2-year insurance policy. It was recorded as prepaid…

E3-4A. Account for insurance expense(.L O 1, 3)

Baker Company paid $3,600o n July 1,2007,for a2-year insurance policy. It was recorded as prepaid insurance. Use the accounting equation to show the adjustment Baker will make to properly report expenses when preparing the December 31,2007 financial statements.

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