Balance Sheet Prepaid Insurance Accrual Basis December 31, Year 1 December 31, Year 2 December 31, Year 3 December 31, Year 4 $ 14.375 7475 575 00 Cash Basis 0 Year 1 Year 2 Year 3 Year 4 Total Income Statement Insurance Expense $ $ Accrual Basis 6,325 6,900 6,900 575 20,700 Cash Basis $ 20,700 0 00 $ 20,700

Balance Sheet Prepaid Insurance Accrual Basis December 31, Year 1 December 31, Year 2 December 31, Year 3 December 31, Year 4 $ 14.375 7475 575 00 Cash Basis 0 Year 1 Year 2 Year 3 Year 4 Total Income Statement Insurance Expense $ $ Accrual Basis 6,325 6,900 6,900 575 20,700 Cash Basis $ 20,700 0 00 $ 20,700

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter4: The Adjustment Process

Section: Chapter Questions

Problem 11Q: If the Prepaid Insurance account had a balance of $12,000, representing one years policy premium,...

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