I don't feel like my answer is correct when I calculate the amount to adjust for prepaid insurance: I am doing an alternative set of instructions on a Rockford Corp bookkeeping assignment for Accounting.

I have the following problem:

The insurance premium outstanding on January 1, 2018 covers the period January 1 through August 31, 2018. The insurance premium of $7800 recorded in August covers the period of September 1, 2018 through August 31, 2019. Rockford estimates that 80% of hte premiums are attributable to general activities and 20% to selling activities.

I first took the 7800*4/12 and got 2600 but that number seems low. I thought then 7800 * .80 and I got 6240 but then how would I record; as I feel it is still part of the remaining months funds. So I did 7800/12 and got 650 then * 4 which got be back to the 2600...