Reference no: EM132569623

THE Company reported the following income statement for 2021:

Sales revenue ............... $365,000
Cost of goods sold .......... 183,000
Insurance expense ........... 48,000
Utilities expense ........... 79,000
Net income .................. $ 55,000

The following selected account balances were taken from THE Company's accounting records during 2021:

                                                      January 1, 2021                          December 31, 2021

Utilities payable                                      37,000                                   24,000
Inventory                                              18,000                                   33,000
Accounts receivable                                  62,000                                 39,000
Prepaid insurance                                        29,000                               36,000
Unearned revenue                                         14,000                              22,000
Accounts payable                                           53,000                               41,000

Question 1: The amount of cash paid for insurance during 2021 was equal to:

Group of answer choices

Option 1: $57,000

Option 2: $33,000

Option 3: $48,000

Option 4: $63,000

Option 5: $41,000

Option 6: $55,000

Option 7: none of the above choices are correct