A company makes the payment of a one-year insurance premium of $3,624 on March 1
ID: 2330096 • Letter: A
Question
A company makes the payment of a one-year insurance premium of $3,624 on March 1, 2016b-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.)
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.)
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.)
Explanation / Answer
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
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