A company makes the payment of a one-year insurance premium of $3,624 on March 1, 2016...

A company makes the payment of a one-year insurance premium of $3,624 on March 1, 2016

b-1. Use the horizontal model to show the amount of insurance premium "used" that month. (Use amounts with + for increases and amounts with – for decreases.)

Expert Solution

The following accounts will be affected by insurance premium "used":
Insurance premium used = 3624/12*10=$3020

Assets	Stockholders' equity
Prepaid insurance	Retained earnings
-3020	-3020

ekkarill92 answered 2 years ago

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