On january 1, DogMart company purchased a two years liability insurance policy for $47900 Cash. the Purchase...

On january 1, DogMart company purchased a two years liability insurance policy for $47900 Cash. the Purchase was recorded to prepaid insurance. How much would be the january 31 amount recorded to expense (use two decimals)

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Expert Solution

Insurance policy is taken for 2 years which will count 24 months and total expenses of the expenses is $47900

so monthly expenses of insurance policy is $47,900 / 24 months = $ 1,995.83 per month

so the monthly expenses of insurance is $ 1,995.83 and expenses of january is $ 1,995.83

and the balance expenses will be shown as prepaid expenses,it comes to $ 45,904.17

ekkarill92 answered 1 year ago

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