On May 1, a two-year insurance policy was purchased for $28,800 with coverage to begin immediately....

On May 1, a two-year insurance policy was purchased for $28,800 with coverage to begin immediately. What is the amount of insurance expense that would appear on the company's income statement for the first year ended December 31?

Expert Solution

Answer: 9600

Explanation

Purchase insurance policy 28800

Insurance policy is 2 year

Insurance policy start from 1 may to 31 December

So we calculate are as:

28800*8/24=9600.

ekkarill92 answered 2 years ago

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