On June 1, Year 1, Company X paid $7,200 for a three-year insurance policy that became...

On June 1, Year 1, Company X paid $7,200 for a three-year insurance policy that became effective on that same date.
$_________ Year 1 Insurance Expense
$_________ Insurance Payable at Dec. 31, Year 1 [If none, so state.]
$_________ Prepaid Insurance at Dec. 31, Year 1 [If none, so state]
On April 1, Year 2, Paul added an additional policy when the firm paid $2,400 for a two-year policy that became effective on that same day.
$_________ Year 2 Insurance Expense
$_________ Prepaid Insurance at Dec. 31, Year 2 [If none, so state.]
$_________ Insurance Payable at Dec. 31, Year 2 [If none, so state.]
$_________ Cash paid for Insurance in Year 2

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ekkarill92 answered 1 year ago

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