b. An analysis of the company\'s insurance policies provided the following facts

Question

b. An analysis of the company's insurance policies provided the following facts. Policy Date of Purchase Months of Coverage Cost A April 1, 2010 24 $ 15,840 B April 1, 2011 36 13,068 C August 1, 2011 12 2,700 The total premium for each policy was paid in full (for all months) at the purchase date, and the Prepaid Insurance account was debited for the full cost. (Year-end adjusting entries for Prepaid Insurance were properly recorded in all prior years.) [Required: Use the information to prepare adjusting entries as of December 31, 2011. (Omit the "$" sign in your response.) Adjusting entries (all dated December 31, 2011]

Explanation / Answer

A $15,840/24=660x12mos=$7,920 B $13,068/36=363x9mos=$3,267 C $2,700/12=225x5mos=$1,125 Total Expense for 2011 = $12,312

Related Questions

Navigate

• Browse (All)
• Browse B
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.