Question
An analysis of the company's insurance policies provided the following facts. Policy Date of Purchase Months of Coverage Cost A April 1, 2013 24 $
| An analysis of the company's insurance policies provided the following facts. |
| Policy | Date of Purchase | Months of Coverage | Cost | |
| A | April 1, 2013 | 24 | $ | 14,400 |
| B | April 1, 2014 | 36 | 12,960 | |
| C | August 1, 2015 | 12 | 2,400 | |
| 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.) |
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Financial Accounting
Authors: David Spiceland, Wayne M. Thomas, Don Herrmann
5th edition
1259914895, 978-1259914898
