Question
Under Hart Companys accounting system, all insurance premiums paid are debited to Prepaid insurance. Hart then makes monthly charges to Insurance expense with credits to
Under Hart Companys accounting system, all insurance premiums paid are debited to Prepaid insurance. Hart then makes monthly charges to Insurance expense with credits to Prepaid insurance as the insurance coverage period is used up. Additional information follows:
| Prepaid insurance at December 31, 20X0 | $ | 210,000 |
| Charges to Insurance expense during 20X1 | 875,000 | |
| Prepaid insurance at December 31, 20X1 | 245,000 | |
Required:
What was the total amount of insurance premiums Hart paid during 20X1?
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The Making Of Finance
Authors: Isabelle Chambost, Marc Lenglet, Yamina Tadjeddine
1st Edition
