On October 1, Year 1, a company paid an $24,300 premium on a 36-month insurance policy for coverage beginning on that date. Refer to that policy and fill in the blanks in the following table. Balance Sheet Prepaid Insurance Accrual Basis December 31, Year 1 December 31, Year 2 December 31, Year 3 December 31, Year 4 $ Answer is complete but not entirely correct. 19,275 X S 17,250 x 13,200 11,175 X Cash Basis 0 0 0 0 Year 1 Year 2 Year 3 Year 4 Total Income Statement Insurance Expense $ $ Accrual Basis Cash Basis 2,025 $ 24,300 2,025 X 2,025 X 2,025 X 2,025 8,100 $ 30,375 2,025 X 2,025

On October 1, Year 1, a company paid an $24,300 premium on a 36 -month insurance policy for coverage beginning on that date. Refer to that policy and fill in the blanks in the following table