The following amounts are taken from consecutive balance sheets of Jensen Com¬

pany. LO8

b Cash received during Year 2 as rental revenue c Cash paid during Year 2 for interest

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Unexpired insurance Unearned rental revenue Interest payable Year 1 Year 2 $ -0- $1,200 5,500 100 4,000 800 The income statement for Year 2 of the Jensen Company shows the following items: Insurance expense. Rental revenue Interest expense Instructions Determine the following amounts: a Cash paid during Year 2 on insurance policies $ 700 18,000 1,000