Qwerty, inc. prepaid $ 3 comma 600 on october 1, 2014 for a one minus year insurance premium. on january 1, 2015 of the next year (after december 31 adjustments), the prepaid insurance account will have a debit balance of (round any intermediate calculations to two decimal places, and your final answer to the nearest whole number.)

The Prepaid Insurance account will have a debit balance of $2,700

Explanation:

The computation of the balance of prepaid insurance is shown below:

On October 1, 2014, its balance is $3,600

And we have to compute till January 1, 2015

So, if we calculate from October 1, 2014, to January 1, 2015, then it has 3 months  

So, 3-month balance equals to

= Amount × (number of months  calculated ÷ total number of months in a year)  

= $3,600 × (3 months ÷ 12 months)

= $900

So, the balance would be

= Amount - adjustments made

= $3,600 - $900

= $2,700  

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best of luck,

the divergent