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Analysis of the company insurance policies

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Question - An analysis of the company's insurance policies provided the following facts.

Policy Date of Purchase Months of Coverage Cost

Policy A           Date of Purchase        Months of Coverage   Cost

A                      April 1, 2014               24                                11,640

B                      April 1, 2015               36                                10,440

C                      August 1, 2015            12                                9,240

The total premium for each policy was paid in full (for all months) at the purchase date, and the prepaid insurance account was debited for the full cost. (Year-end adjusting entries for prepaid insurance were properly recorded in all prior years.)

Reference no: EM131722263

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