Question
Under Hart Company's accounting system, all insurance premiums paid are debited to Prepaid Insurance. For interim financial reports, Hart makes monthly estimated charges to Insurance
Under Hart Company's accounting system, all insurance premiums paid are debited to Prepaid Insurance. For interim financial reports, Hart makes monthly estimated charges to Insurance Expense with credits to Prepaid Insurance. Additional information for the year ended December 31, 2011, follows: Prepaid insurance at Dec. 31, 2010 $210,000 Charges to Insurance expense during 2011, including a year-end adjustment of $35,000 $875,000 Unexpired insurance premiums at December 31, 2011 $245,000 What was the total amount of insurance premiums Hart paid during 2011?
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