On may 1, a two year insurance ploicy was purchased for $18,000 with coverage to begin...

On may 1, a two year insurance ploicy was purchased for $18,000 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

Amount of insurance expenses that whould be appear on the company's income statement for the 1st year ended = 18000*8/24= 6000

amount paid for insurance policy for 2 year i,e 24 month, month in the current year are from may 1 to december 31 i.e. 8 month

ekkarill92 answered 2 years ago

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