Murphy, Inc. prepaid $ 8,400 on October 1, 2018 for a one - year insurance premium. Coverage begins October 1. On January 1, 2019 (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.)

$6300

Explanation:

A prepaid insurance is a part of an insurance premium payment that is made in advance before the expiration on the balance sheet. also the unexpired amount of the prepaid insurance is recorded under the head current account found on the asset side of the balance sheet.

Amount of premium paid = $8400

validity of premium = 12 months

date of premium payment = October 1 2018

balance on prepaid insurance accounts = ( 8400 / 12 ) * 9

                                                                    = $6300

9 = the remaining months on the prepaid premium

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