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23 August, 12:24

Prepaid Insurance $11,048. The company has separate insurance policies on its buildings and its motor vehicles. Policy B4564 on the building was purchased on April 1, 2018, for $8,064. The policy has a term of 3 years. Policy A2958 on the vehicles was purchased on January 1, 2019, for $5,000. This policy has a term of 2 years.

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  1. 23 August, 15:20
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    total insurance expense 5,188 dollars

    insurance expense 5,188 debit

    prepaid insurance 5,188 credit

    Explanation:

    We calcualte the value of a single month on eahc policy and then multiply by the complete year.

    8,064 building policy for 3 years:

    value oer month: 8,064 / 36 = 224

    expired amount on 2019: 224 x 12 = 2,688

    vehicles policy: 5000 for 2 years:

    5,000 / 24 = 208.33

    expired amount on 2019: 208.33 x 12 = 2,500

    total insurance expense 5,188 dollars
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Home » Business » Prepaid Insurance $11,048. The company has separate insurance policies on its buildings and its motor vehicles. Policy B4564 on the building was purchased on April 1, 2018, for $8,064. The policy has a term of 3 years.
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